The Financial Impact of CSR Reporting on Emerging Market ‎Banks: An Empirical Investigation

  • Authors

    • Mst. Rinu Fatema Faculty of Tourism and Hospitality Management, Noakhali Science and Technology ‎University, Bangladesh https://orcid.org/0009-0001-8409-6737
    • Dr. Sumi Saha Associate Professor, Dept. of Accounting and Information Systems, University of Rajshahi, ‎Bangladesh https://orcid.org/0009-0002-1415-0176
    • Dr. Mst. Hasna Banu Associate Professor, Dept. of Accounting and Information Systems, University of Rajshahi, ‎Bangladesh https://orcid.org/0009-0005-4983-0675
    • Md. Mahofuzur Rahman Assistant Professor (on study leave), Department of Business Administration at Port City International University in Chattogram, ‎Bangladesh
    • Dr. Md. Sumon Hossain Associate Professor, Dept. of Accounting and Information Systems, University of Rajshahi, ‎Bangladesh
    https://doi.org/10.14419/zwfnrd83

    Received date: November 28, 2025

    Accepted date: December 9, 2025

    Published date: December 19, 2025

  • Banking Companies; CSR Reporting; Leverage; Return on ‎Assets; Return on Equity; Tangibility

  • Abstract

    Banks play a vital role in sustaining a healthy economy, and corporate social responsibility ‎‎(CSR) initiatives provide them with legitimacy and a competitive advantage. This study ‎investigates the extent of CSR disclosure and its influence on the financial performance of ‎Bangladeshi banks. Secondary data were collected from the annual reports of ten listed ‎banks in Bangladesh over seven years (2017–2023) using a stratified random ‎sampling approach. The analysis employed content analysis, ANOVA, and panel regression ‎models, incorporating control variables such as firm age, firm size, independent directors, ‎leverage, and asset tangibility. Findings reveal that banks disclose, on average, 28.90% of ‎CSR-related information, while neglecting aspects such as product responsibility and minority ‎issues. Among the disclosed dimensions, contribution to the national exchequer ranks highest, ‎followed by education, community development, and disaster management. CSR disclosure ‎has shown a steady upward trend during the study period. Regression results demonstrate ‎that CSR reporting significantly and positively affects financial performance, suggesting that ‎greater CSR engagement is associated with higher profitability. Furthermore, leverage and ‎tangibility positively influence bank performance, while firm age, size, and independent ‎directors show no significant effect. Overall, the results highlight that robust CSR practices ‎not only boost banks’ profitability but also reinforce their legitimacy and competitiveness. ‎Policymakers should therefore promote standardized CSR reporting, and banks should ‎expand their disclosure to overlooked areas such as product responsibility and minority ‎inclusion to foster sustainable growth‎.

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    Fatema, M. R. ., Saha, D. S., Banu, D. M. H. ., Rahman, M. M., & Hossain, D. M. S. (2025). The Financial Impact of CSR Reporting on Emerging Market ‎Banks: An Empirical Investigation. International Journal of Accounting and Economics Studies, 12(8), 591-602. https://doi.org/10.14419/zwfnrd83