Abstract:

Especially for the developing country Turkey, the banking sector, which is one of the important components of the financial markets, has a special importance since the capital markets have not deepened enough. Based on this importance, the aim of the study is to examine the effect of Banks' Corporate Social Responsibilities on their accounting-based financial performances within the scope of stakeholder theory. For this purpose, the data of the research were obtained from the 11-period financial and annual reports published by the Public Disclosure Platform (KAP) of 10 banks operating in the BIST between 2010-2020. The data of the Gross Domestic Product Growth Rate (GDP) variable, which is one of the macroeconomic control variables, was obtained from the world bank database. In the study, panel regression method was applied to determine the relationship between the financial performance of banks and CSR. According to the results of the analysis, no statistically significant relationship was found between CSR and financial performance indicators ROA and NIM, while a significant and negative relationship was found between CSR and ROE. In addition, when the relationship between CSR dimensions and financial performance was examined, no statistically significant relationship could be found between any of the CSR dimensions (dividend payment rate, personnel expense ratio, interest payment rate, tax rate and public welfare donation rate) and ROA and NIM. While the personnel expense ratio and tax rate, which are among the CSR dimensions, have a statistically significant and negative effect on ROE, it has been determined that they have a positive and significant effect on the public welfare donation rate. In particular, a 1% increase in the public welfare donation rate increases ROE by approximately 48%. According to this result, it can be said that banks should give more importance to social responsibility projects with social content in order to increase their financial performance more.

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