The Relationship Between CSR Performance And Financial Performance In China Listed Bank

With the development of global economic and the development of economics inChina, there has been more and more researchers focus on the Corporate SocialResponsibility (CSR). Moreover, the relationship between CSR performance andfinancial performance is also a key research topic for researchers. The development ofbanking in China is still in the primary stage. There still have been some disadvantagescompared with the foreign banks. Based on this, it is significant important to researchthe relationship between the CSR performance and financial performance in Chinabanks. The research is not only provided a direction for the development of banks, butalso it can make the stakeholders understand the banks. As a result, the better reputationof banks has been established.Banks as the core of modem economics play a key role in the development ofglobal economy. Moreover, there has been more corporate social responsibility shouldbe taken by the banks compared with the production sectors. This is due to that the banksector is related to financial, social and economic security of a country. The financialcrisis which is started from2007lead to huge losses in the global financial institutions.The collapse of Lehman has made the public loss confidence on the banks. Furthermore,some irresponsible performance in bank sector has happened in2012and this also hasbeen considered by the public again. For example, there have been unreasonable lossesin the JP Morgan Chase. Barclays also faces huge fines due to LIBOR has beenmanipulated by it. A series of significant events has made the bank sector rethink theperformance of corporate social responsibility. The irresponsible behavior of banks canaffect the whole society and it is difficult to recover. Based on this, it is imminent toresearch the CSR especially in the bank sector.The relationship between CSR performance and financial performance in Chinalisted banks has been investigated in this dissertation. Moreover, the relationshipbetween the CSR performance and the firm risk and firm size also has been researched.This dissertation follows the model of Li’s in2012. The return on assets（ROA has beenused to measure the financial performance of the listed banks. There has been foursector in this dissertation, first part is the research background. Second part is theliterature review. Moreover, this dissertation is connected with the stakeholder theory.Third part is the methodology which is based on the relevant data. Moreover, theinnovation of this dissertation is that the method of measuring the CSR performance of banks. This dissertation uses the CSR index which is published by the Chinese academyof social sciences. Based on this, the empirical results shows that there has been norelationship between CSR performance and financial performance in China listed banks.