Does Corporate Social Responsibility (CSR) affect Financial Performance and Market Value? An Evidence from Banking Industry of Bangladesh
Author (s)
Anik Mitra & Abm Absar Hamid
Abstract
Corporate Social Responsibility has grown into a fundamental concept in the corporate world, reflecting how companies integrate environmental, social, and governance (ESG) aspects into their decision-making processes. The goal of the research is to analyze the impact of CSR on both financial performance and market value. Banks of Bangladesh prepare a handsome budget for CSR activities, and this study’s aim is to explore the impact that CSR has on the market value and financial performance of banks. The dependent variables are Return on Equity (ROE) and Tobin’s Q. ROE is used for the purpose of evaluating financial performance, whereas Tobin’s Q is used for the purpose of evaluating market value. This study used time series data for the period of 2017-2021 of 23 banks listed on the Dhaka Stock Exchange (DSE). Linear regression analysis is used to know the relationship. This study revealed a positive relation between CSR and financial performance, although it was not deemed statistically significant. There is a positive and strong relationship between CSR and market value. The allocation of an organization’s CSR funds contributes to the enhancement of their financial performance and a boost of their market value.
Keywords: Corporate Social Responsibility, Financial Performance, Market Value, Return on Equity, Tobin’s Q.
| Title: | Does Corporate Social Responsibility (CSR) affect Financial Performance and Market Value? An Evidence from Banking Industry of Bangladesh |
|---|---|
| Author: | Anik Mitra & Abm Absar Hamid |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2621 |
| Media: | Online |
| Volume: | 48 |
| Issue: | 1 |
| Issue publication (Year): | 2025 |
| Acceptance Date: | 23/08/2025 |
| Date of Publication: | 25/08/2025 |
| PDF URL: | http://ijsab.com/wp-content/uploads/2621.pdf |
| Free download: | Available |
| Page: | 1-13 |
| First Page: | 1 |
| Last Page: | 13 |
| Paper Type: | Research paper |
| Current Status: | Published |
Cite This Article:
Mitra, A. & Hamid, A. A. (2025). Does Corporate Social Responsibility (CSR) affect Financial Performance and Market Value? An Evidence from Banking Industry of Bangladesh, International Journal of Science and Business, 48(1), 1-13. https://doi.org/10.58970/IJSB.2605
About Author (s)
Anik Mitra (Corresponding Author), Department of Business Administration, Louisiana Tech University, Ruston, Louisiana, United States of America. ORCID: https://orcid.org/0009-0004-5501-7106
Abm Absar Hamid, Department of Business Administration, Army Institute of Business Administration, Sylhet-3104, Bangladesh. ORCID: https://orcid.org/0000-0003-4057-5127
DOI: https://doi.org/10.58970/IJSB.2621
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