The relationship between corporate social responsibility and financial performance: a moderate role of fintech technology

• Published in: Environmental science and pollution research international Vol. 28; no. 16; pp. 20174 - 20187
• Main Authors: Liu, Yadong, Saleem, Sharjeel, Shabbir, Rizwan, Shabbir, Malik Shahzad, Irshad, Adil, Khan, Shahbaz
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer Berlin Heidelberg 01-04-2021; Springer Nature B.V
• Subjects: Aquatic Pollution; Atmospheric Protection/Air Quality Control/Air Pollution; Bank technology; Banking; Dependent variables; Earth and Environmental Science; Ecotoxicology; Environment; Environmental Chemistry; Environmental Health; Environmental science; Research Article; Social responsibility; Waste Water Technology; Water Management; Water Pollution Control; Corporate social responsibility; E11; Fintech technology; Banking performance; Environmental disclosures; D50; Chinese banking sector
• ISSN: 0944-1344; 1614-7499
• DOI: 10.1007/s11356-020-11822-9

This study explores the new area of corporate social responsibility (CSR) and financial performance in the context of the fintech technology. The fintech technology is currently a very interesting and growing area in the financial organization and how it affects financial performances in different dimensions of banking sector. This study investigates the linear and non-linear relationship between corporate social performance (CSP) and banking performance (BP) by using the dataset of Chinese banks from 2009 to 2018. The results indicate that the interactive variable of CSR (GOV*SOC) shows insignificant influence on the returns on assets (ROA), returns on equity (ROE), and nominal interest margin profit (NIMP) from dependent variable. Moreover, the other CSR variable such as GOV*ENV significantly positively influences ROA and ROE. The square value of the GOV “governance disclosures scores” shows insignificant influence regarding ROA, ROE, and NIMP. Finally, the fintech technology (fintech) positively and significantly impacts on ROE and NIMP and positively but insignificantly affects on ROA in both linear and non-linear models of the study. This study is a roadmap for the financial firms to improve their sources through modern fintech technology regarding financial sector.