Exploring the impact of Corporate Social Responsibility on theFinancial Performance of Rural and Community Banks in Ghana

摘要

The interest of Rural and Community Banks (RCBs) in CSR activities which include education and leadershipdevelopment, Health, Community development are geared towards ensuring the wellbeing of communitymembers. This means that CRS is key to the success of RCBs. Based on the above reasons the study attempts toexamine the influence of CSR on the financial performance of selected Ghanaian Rural and Community Banks.RCBs sampled for this study were fifteen (15) from the Kumasi Metropolis in Ghana using annual reports for asix-year-period from 2012 to 2017. Regression analysis was employed to measure the effect of CSR, financialindicators, bank age, and size of the board of directors using the Data Envelope Technique on the performance ofthe RCBs. Findings showed that technical efficiency and productivity were low in some RCBs over thesix-year-period. The results also showed that technical change, technological change, and Total FactorProductivity affected performance. However, the size of the board of directors was inversely related to theperformance of RCBs. There is therefore the need for RCBs to improve input savings and also ensure an efficientallocation of monetary resources to corporate social responsibility activities as a way of enhancing their overallproductivity. Not much has been written about the impact of CSR on the financial performance of RCBs in Africa.This study thus is among the first significant attempts to explore the impacts of CSR on the financial performanceof RCBs in Africa. .