Purpose

This research investigated whether corporate social responsibility (CSR) can alleviate the negative effect of non-performing loans (NPLs) on bank performance.

Design/methodology/approach

The research employed a sample of European banks over the 2008–2017 period. To resolve endogeneity and heterogeneity problems, the system generalized method of moments (SGMM) model was employed.

Findings

First, bank NPLs were negatively and significantly associated with bank performance as measured by the Q-Tobin ratio and the return on assets (ROA). Second, CSR scores exerted a negative and significant effect on the level of NPLs. Finally, the results indicated that bank performance could benefit from the interactional effect of CSR and NPLs.

Research limitations/implications

This study fills the gap in the debate over the mediating role of CSR in the NPLs – bank performance interrelation. In addition, our SGMM analysis yielded more robust and efficient results while resolving endogeneity and heterogeneity problems concerning CSR and bank performance or risk in corporate finance.

Practical implications

CSR practices can play an essential mediating role in the NPLs–bank performance relationship. CSR activities in the European context may reduce the level of NPLs and increase bank performance.

Originality/value

To the best of the authors’ knowledge, studies of the implications of CSR activities on the banking sector are very limited. Indeed, this paper shows that CSR mediates the relationship between CSR practices and NPLs. The results suggest that bank performance could benefit from the interactional effect of CSR and NPLs.

中文翻译：

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不良贷款和银行绩效：企业社会责任发挥什么作用？欧洲银行的系统 GMM 分析

目的

本研究调查了企业社会责任（CSR）是否可以减轻不良贷款（NPL）对银行绩效的负面影响。

设计/方法论/途径

该研究采用了 2008 年至 2017 年期间的欧洲银行样本。为了解决内生性和异质性问题，采用系统广义矩法（SGMM）模型。

发现

首先，按照 Q-托宾比率和资产回报率 (ROA) 衡量，银行不良贷款与银行业绩显着负相关。其次，企业社会责任得分对不良贷款水平产生显着的负向影响。最后，结果表明银行绩效可以受益于企业社会责任和不良贷款的相互作用。

研究局限性/影响

这项研究填补了关于企业社会责任在不良贷款中的中介作用——银行绩效相互关系的争论的空白。此外，我们的SGMM分析产生了更稳健和有效的结果，同时解决了企业社会责任和银行绩效或企业融资风险的内生性和异质性问题。

实际影响

企业社会责任实践可以在不良贷款与银行绩效关系中发挥重要的中介作用。欧洲背景下的企业社会责任活动可能会降低不良贷款水平并提高银行绩效。

原创性/价值

据作者所知，关于企业社会责任活动对银行业影响的研究非常有限。事实上，本文表明企业社会责任调解了企业社会责任实践与不良贷款之间的关系。结果表明，银行绩效可以受益于企业社会责任和不良贷款的相互作用。