Banking efficiency under corporate social responsibilities
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Banking efficiency under corporate social responsibilities. / Ohene-Asare, Kwaku; Asmild, Mette.
In: International Journal of Banking, Accounting and Finance, Vol. 4, No. 2, 2012, p. 146–171.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Banking efficiency under corporate social responsibilities
AU - Ohene-Asare, Kwaku
AU - Asmild, Mette
PY - 2012
Y1 - 2012
N2 - This paper expands the banking efficiency literature by developing a banking intermediation model that captures both profit-maximizing and Corporate Social Responsibilities (CSR) of banks. Using a data set of 21 banks for each year 2006-2008, we evaluate the relative efficiency of Ghanaian banks using Data Envelopment Analysis (DEA) thus contributing to the scanty research on African banks. We observe a significant difference between the DEA model that includes CSR and the other without CSR, an indication that the inclusion of CSR may be important for bank efficiency assessment. As a further analysis, we use a second stage OLS regression which confirms a positive relationship between CSR and profitability and efficiency indicators. The findings suggest that considering CSR in efficiency assessment of banks is not only important on conceptual grounds, but also indicates that banks that are socially responsible may have economic advantages.
AB - This paper expands the banking efficiency literature by developing a banking intermediation model that captures both profit-maximizing and Corporate Social Responsibilities (CSR) of banks. Using a data set of 21 banks for each year 2006-2008, we evaluate the relative efficiency of Ghanaian banks using Data Envelopment Analysis (DEA) thus contributing to the scanty research on African banks. We observe a significant difference between the DEA model that includes CSR and the other without CSR, an indication that the inclusion of CSR may be important for bank efficiency assessment. As a further analysis, we use a second stage OLS regression which confirms a positive relationship between CSR and profitability and efficiency indicators. The findings suggest that considering CSR in efficiency assessment of banks is not only important on conceptual grounds, but also indicates that banks that are socially responsible may have economic advantages.
U2 - 10.1504/IJBAAF.2012.048331
DO - 10.1504/IJBAAF.2012.048331
M3 - Journal article
VL - 4
SP - 146
EP - 171
JO - International Journal of Banking, Accounting and Finance
JF - International Journal of Banking, Accounting and Finance
SN - 1755-3830
IS - 2
ER -
ID: 37849590