Antecedents of Corporate Social Responsibility in the Banks of Central-Eastern Europe and Former Soviet Union Countries

Authors: Holscher, J.

Start date: 24 October 2015

This paper explores the determinants of corporate social responsibilities (CSR) in the banking sector of transition countries of Central and Eastern Europe (CEE) as well as of the former Soviet Union (FSU). Our panel fixed- and random-effects logit results for 237 banks covering the period 2000-2012 show that financial performance is not associated with CSR, however, larger banks are more likely to engage in CSR. Additionally, the government effectiveness and regulatory quality increases the likelihood of the banks to engage in social activities. There is a range of possible approaches that governments can take to encourage social activities in the banking sector of transition countries: (1) stimulate the demand for CSR information and encourage banks to report their social activities through improving the relevant legislation; (2) improve competition in the banking sector by attracting foreign investors from Western OECD countries; (3) improve stability and the legal environment including control of corruption. Overall, our results are consistent with the theory that necessary conditions must be in place to support CSR and this seems absent in the countries under investigation.

This data was imported from RePEc:

Authors: Djalilov, K. and Hoelscher, J.

This article explores the determinants of corporate social responsibilities (CSR) in the banking sector of the transition countries of Central and Eastern Europe (CEE), as well as those of the former Soviet Union (FSU). Our panel fixed-logit results for 237 banks, covering the period 2000-2012, show that while financial performance is not associated with CSR, larger banks are more likely to engage in CSR. Additionally, a government’s effectiveness and its regulatory quality increase the likelihood that the banks will engage in social activities. A range of possible approaches that governments can take to encourage social activities in the banking sector of transition countries are provided. Overall, our results are consistent with the theory that the necessary conditions must be in place to support CSR, which seem to be absent in the countries under investigation.

The data on this page was last updated at 12:01 on May 30, 2020.