Title: Social performance reporting in the Indian banking sector - exploring linkage with financial performance

Authors: Parul Munjal; P. Malarvizhi; Deergha Sharma

Addresses: School of Management, The NorthCap University, Sector 23 A, Gurugram, Haryana, 122017, India ' IILM University, Sector 53, Gurugram, Haryana, 122003, India ' School of Management, The NorthCap University, Sector 23 A, Gurugram, Haryana, 122017, India

Abstract: The research aims to analyse the social performance of the Indian banking sector and examine its relationship with the financial performance. Secondary data has been collected for a five year period (2013-2014 to 2017-2018) on a sample of 54 banks operating in India. Content analysis was applied to extract information about social performance disclosed by sample banks to help construct disclosure score index. Hierarchical multiple regression was applied to analyse the relationship between social and financial performance while controlling for the effects of size, financial leverage, and capital intensity. Our results indicate that there exists a significant positive relationship between social and financial performance of banks operating in India. These results lend support to the stakeholder theory, the good management theory, and the motivational theory. Our findings provide insights into the role of bank managers, policy makers and regulators to integrate social performance into core banking operations, and to frame more concrete social policies leading to enhanced financial performance.

Keywords: social performance; financial performance; banking; content analysis; hierarchical multiple regression.

DOI: 10.1504/AAJFA.2023.129541

Afro-Asian Journal of Finance and Accounting, 2023 Vol.13 No.2, pp.192 - 209

Received: 26 Jul 2019
Accepted: 19 Jun 2020
Published online: 14 Mar 2023 *

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