The Relationship between the Corporate Social Responsibility and the Bank’s Cost Efficiency

• Main Authors: Liu, Jun-Han, 柳君翰
• Other Authors: Liang, Lien-Wen
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/56199592614683090620

碩士 === 中國文化大學 === 財務金融學系 === 102 === Since the 1990s, the issue of corporate social responsibility has gathered more at-tentions. The funding of banking not only comes from shareholders, but also mainly from the deposits of the community and other financial markets funds. In case of fraud that leads to catastrophic losses or collapse, there would be great damage to the related parties and interests of the community as a whole. Therefore corporate social responsi-bility is very important to banking. However, previous studies often focus on exploring the impact of CSR on business performance in general, but very few literatures cover the relationship between corporate social responsibility of banking and bank efficiency. This study applies stochastic frontier approach (SFA) to 15 financial holding banks and 21 non-financial holding banks from 2006 to 2012. First of all, SFA of Battese and Coelli (1995) is used with relevant variables in corporate social responsibil-ity inefficiency model to investigate its effect on the banks' cost efficiency. Second, as the financial holding banks and non-financial holding banks belong to different groups of the cost function, stochastic metafrontier approach (SMF) of Huang, Huang, and Liu (2011) is used to explore the impact of environment variables to finan-cial holding companies and non-financial holding companies. Also further comparison of technology gap efficiency (TGR) and metafrontier cost efficiency (MCE) between financial holding banks and non-financial holding banks. Empirical results show that the implementation of corporate social responsibility among the financial holding banks and non-financial holding banks were able to reduce the overall cost of inefficiency, but only CSR report shows that the cost efficiency of non-financial holding banks increase. The TGR and MCE of financial holding banks have better than independent non-bank holding banks.