How do Financial Inclusion and Corporate Social Responsibility Affect Bank Earnings and Risk? Evidence from Taiwan

• Main Authors: WEI, CHING-HSUAN, 魏敬萱
• Other Authors: CHIEN, MING-CHE
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/je6ftm

碩士 === 國立臺北大學 === 經濟學系 === 106 === This study utilizes the Panel Data Analysis to 35 banks in Taiwan for the period of 2009-2016 to analyze the effects of Financial Inclusion (FI) and Corporate Social Responsibility (CSR) on bank earnings and risk. Return on assets, return on equity and earning per share are used to measure bank earnings; while non-performing loan ratio, 1 minus equity ratio and 1minus current ratio are used to measure credit, financial, and liquidity risk of bank, respectively. Major findings of the study are as follow. First, variables representing FI such as the ratio of lending to private enterprise and the number of credit cards are found significantly negatively related to bank earnings, while the number of ATM machines is positively related to earnings. Under the fulfillment of CSR, the number of credit cards is found to have positive effect on bank earnings. Variables representing CSR such as the employee benefit expenses is negatively related to bank earnings. While the degree of employee contribution is found to be positively related to bank earnings, the effect will be reinforced if bank is promoting FI. Second, variable representing FI such as the number of credit cards is positively related to credit risk. While the ratio of lending to private enterprise is negatively related to both liquidity and financial risks, the effects are reinforced as FI and CSR are fulfilled at the same time. In terms of CSR, employee benefit expenses and the degree of employee contribution are found to be negatively related to bank risk. Lastly, banks listed in Taiwan HC100 index are found significantly to have positively effect on bank risks.