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The Moderating Role of Financial Stability in the Relationship between Corporate Social Responsibility, Financial Performance, and Liquidity Creation in Banks
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Mandana Taheri *    , Mahshid Shahchera , Zahra SalehiYar |
| Allameh Tabataba'i University, Faculty of Management and Accounting , mandanataheri@atu.ac.ir |
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Abstract: (10 Views) |
| This study aims to investigate the impact of corporate social responsibility (CSR) on banks’ financial performance and liquidity creation, considering the moderating role of financial stability. The statistical population includes listed banks on the Tehran Stock Exchange over a 7-year period, and panel data analysis was employed. The findings reveal that CSR has a positive and significant effect on return on assets (ROA). Furthermore, financial stability negatively moderates the relationship between CSR and financial performance, such that in banks with high financial stability, the positive effect of CSR on performance diminishes or reverses. Regarding liquidity creation, CSR alone does not have a significant impact; however, in the presence of financial stability, this relationship becomes positive and significant. These results suggest that CSR can contribute to liquidity creation only when banks have a stable financial structure. The study emphasizes the importance of internal bank conditions in determining the effectiveness of CSR initiatives and recommends that banking policymakers consider CSR as a complementary tool alongside indicators of financial soundness. |
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| Keywords: Return on Assets, Financial Stability, Liquidity Creation, Financial Performance, Corporate Social Responsibility |
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Full-Text [PDF 1025 kb]
(7 Downloads)
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Type of Study: Research |
Subject:
Special
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