Banking industry: profitability and social responsibility

ABSTRACT

This paper aims to go more deeply into the study of the relationship between ROA/ROE in the financial entities due to their specific features, different objectives, and compromise with CSR. We analyse 16 banks listed on benchmark stock exchanges indexes during the period 2005–2015. The main conclusion is that there is a significant negative relationship between profitability and the social responsibility index. We also find a significant relationship between listing and ROA and ROE, and between size and ROA in the sample of banks studied.

KEYWORDS:

• ROA
• ROE
• social responsibility
• financial entities
• banks

Disclosure statement

No potential conflict of interest was reported by the authors.