The impact of corporate social responsibility on financial performance: Case of Vietnam joint stock commercial banks

Abstract

The purpose of this paper is to test the impacts of corporate social responsibility (CSR) on financial
performance in the context of banking which based on stakeholder theory. Secondary data collected from
2013- 2017 of 29 joint-stock commercial banks in Vietnam. The collected data were analysed using content
analysis, descriptive statistical methods, Pooled OLS model, FEM and REM. After Breusch tests - Pagan Lagrange
and Hausman test, a strong standard error model for FEM is the most suitable model for research and giving
the conclusion that corporate social responsibility has a positive impact on financial performmance. Based on
this result, the paper proposes some administrative implications for the banking industry to enhance financial
performance through CSR’s practices