أثر الأداء المالي على المسؤولية الاجتماعية للشركات : دراسة ميدانية على البنوك المدرجة في بورصة فلسطين

Abstract EN

Purpose : the study aims to empirically investigate the impact of financial performance by using return on assets, equity, earning per share, and net profit (ROA, ROE, EPS, NP).

In addition, the study also investigates the bank size and the paid-up capital as control variables on the banks’ social responsibility (CSR) of the listed banks in the Palestinian stock exchange.

Study design / methodology / approach : the study relied on the descriptive and analytical approach in studying social responsibility aspects and analyzing annual data related to the study problem.

The researcher employed a panel data regression model with fixed effects (GMM) methods using the eviews program.

Sample and data : the study was applied to seven listed banks during the period 2010-2019.

The collected data was converted to quarterly data to increase the number of observations, facilitate statistical analysis, and overcome the problem of discrepancy and outliers of the huge data used and converted to the algorithmic formula, such as net profits and net revenues.

Results : a negative relationship between CSR and ROA, EPS, and ROE was found.

On the other hand, a positive association between CSR and NP, PCT, and SIZE was induced.

The study found that when the contribution of expenditures on social responsibility by listed Palestinian banks increases, it will positively impact its net profit and a negative one on returns distributed to the owners and investors.

Originality / value : the majority of scholarly studies have focused on the subject of social responsibility by examining the impact of social responsibility on the financial performance of companies.

This study investigated the subject in a reverse way by studying the effect of financial performance indicators on the degree of participation of Palestinian banks included in social responsibility to benefit from its results in promoting the concept of corporate social responsibility.

Research limitations / implications : this study is limited to the Palestinian banks, specifically the seven listed banks on the Palestine Stock Exchange, given that these banks direct their activities towards social responsibility in the Palestinian territories, unlike the foreign banks.