Frontiers of Finance

A Bibliometric Analysis of the Relationship between Corporate Social Responsibility (CSR) and Firm Performance in Bangladesh

Tipon Tanchangya, Asif Raihan, Junaid Rahman, Mohammad Ridwan, Naimul Islam — Fri, 30 Aug 2024 00:00:00 +0800

This paper seeks to examine the literature on corporate social responsibility (CSR) in order to offer a comprehensive overview of the potential impact of CSR on organizational financial outcomes. The paper also examines CSR research in Bangladesh with a more detailed perspective. Data were collected from several reliable sources, such as Web of Science, Scopus, ScienceDirect and Google Scholar, and data range is 2000 to 2024. Based on a thorough analysis of 45 recent empirical studies, it is evident that the literature strongly supports the positive impact of CSR on firm financial performance. However, the overall findings remain inconclusive. The existing research on CSR and its impact on firm performance addresses several key aspects. These include the theoretical foundation, measurement of CSR, methodological considerations, the importance of considering intervening factors in the relationship between CSR and firm performance, and the potential for further exploration of this topic in developing and emerging economies. The existing literature on the relationship between CSR and firm performance in Bangladesh exhibits similar issues. Research in this field is currently lacking in both quantity and quality, which is evident in several issues. These include a limited number of international publications, a lack of theory-driven research, and less rigorous research design. Based on these findings, it is recommended that future research takes a multi-theoretical approach to gain a more comprehensive understanding of how CSR impacts firm performance. Additionally, more rigorous methodologies should be employed to measure various dimensions of CSR and address the issue of endogeneity in the causal relationship between CSR and firm performance. Furthermore, further investigation is needed to understand why and how CSR can enhance firm financial performance in the presence of situational factors. Lastly, it is important to expand the literature by gathering more evidence from different country contexts, including developing and emerging countries.

Does Unemployment Affect Banking Performance? A Case Study of Indian Commercial Banks

Sreemanta Sarkar, Debdas Rakshit — Mon, 02 Sep 2024 15:11:26 +0800

This study attempts to examine whether unemployment has any role in influencing the performance of commercial banks in India. Taking the data of all public and private sector commercial banks which were continuously in operation over the period from 2001 to 2017, we have attempted to investigate the influence of unemployment on the performance of Indian banking sector. We have considered return on equity and net interest margin as the measure of banking performance, unemployment as the focused independent variable, asset quality, operating efficiency, quality of loan as the bank-specific control variables and gross domestic product, inflation and unemployment as the macroeconomic control variables for this study. Applying GMM estimation method developed by Arellano and Bover we have tried to observe whether unemployment leave any impact on banking performance of India. Estimation results suggest that unemployment has significant positive association with banking performance and this result remains unchanged with the sequential inclusion of bank-specific and macroeconomic control variables. All the bank specific control variables exert significant negative influence on the banking performance whereas in case of macroeconomic control variables we observe mixed findings. The results arrived in this study have profound implications in formulating suitable policy decisions for the growth and development of the Indian banking sector.

Practices of Green Marketing and Corporate Social Responsibility (CSR) to Promote Sustainable Business in Emerging Country

Tue, 05 Nov 2024 14:40:58 +0800

Sustainable business practices significantly impact environmental, social, and economic development, with green marketing and corporate social responsibility (CSR) serving as the primary domains for promoting sustainability. Many researchers aim to demonstrate the impact of various variables on sustainable business. However, no research has yet addressed the variables of green marketing and CSR in the context of Bangladesh, making it essential to investigate these factors. This paper aims to analyze the interrelationship between sustainable business, green marketing, and CSR, demonstrating how these variables can effectively enhance sustainable business practices in Bangladesh. The research employs a conceptual methodology. Data is gathered from secondary sources including research articles, books, book chapters, conference proceedings, reports, and websites. This research comprises two aspects. This study examines the impact of green marketing and CSR on sustainable business practices. The initial phase of t

Profitability Outlook: Analyzing Firm and Country Level Drivers in the Banking Sector

Jhansi RaniBoda, Kainat Iftikhar, Tanveer Bagh, Muhammad NadirShabbir — Wed, 20 Nov 2024 11:32:04 +0800

This study investigates the determinants of bank profitability at both firm and country levels in Pakistan, with profitability assessed using key indicators: Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). We analyzed a diverse set of financial institutions 41, including commercial banks, specialized banks, foreign banks, microfinance banks, development financial institutions, and investment banks from 2013-222. We explore bank-specific variables, including size, capital adequacy, operating expenses, productivity, asset quality, liquidity, deposits, asset management, operating efficiency, and leverage. Additionally, we examine the influence of macroeconomic determinants, such as gross domestic product rate, inflation rate, exchange rate, interest rate, financial crises, and government changes. A two-step GMM approach was applied to manage endogeneity issues, providing robust, reliable insights into the determinants of profitability and the findings uncover intricate correlations within Pakistan's diverse banking landscape, highlighting both positive and negative influences on bank profitability. This study enhances existing literature by offering a comprehensive perspective on bank profitability determinants in Pakistan, integrating micro and macroeconomic factors. It provides valuable insights for stakeholders within the banking industry, emphasizing the relevance of its findings within Pakistan's evolving banking sector.

Pakistan's trade relations with BRICS countries: trends, export-import intensity, and comparative advantage

Shakil Ahmad, Asif Raihan, Mohammad Ridwan — Sat, 14 Sep 2024 17:17:14 +0800

This research examines Pakistan's 2003–2021 trade with BRICS nations. The International Trade Center, World Integrated Trade Solutions, and UN COMTRADE provide data for the study. We used the Balassa index (RCA) and Comparative Advantage framework to analyze Pakistan's trading strengths. We also utilized the Export and Import Intensity Indexes to evaluate trade linkages. These methods supported our findings and accurately represented Pakistan-BRICS trade changes. This analysis compares Pakistan's exports and imports from BRICS nations throughout time. Pakistan's exports to South Africa, Brazil, Russia, India, and China varied in 2005; by 2021, they had changed. Exports to Brazil and Russia rose from $0.011 billion to $0.099 billion and $0.175 billion. Exports to India fell from $0.337 billion to nearly nothing. South African exports rose from $0.221 billion to $0.223 billion, while Chinese exports rose from $0.435 billion to $3.042 billion. These developments show Pakistan's evolving BRICS trade relations. Pakistan's trade with BRICS countries shows remarkable trends. Pakistan trades more to China, a major commercial partner. Exports to India have dropped, indicating strained ties. Export fluctuation to other BRICS nations emphasizes the need for stable trade policy and market diversification. The report emphasizes improving business conditions, investing in R&D, and diplomatically strengthening commercial links with BRICS nations. Pakistan has a comparative advantage over Russia and China in some items, which might help policymakers and entrepreneurs explore export opportunities. The export intensity index shows Pakistan's dependence on China, while the import intensity index shows BRICS nations' vulnerability to external shocks. This research analyzes commodity export value and percentage fluctuations. The commodities market is dynamic and affects trade values, as seen by commodity growth patterns. The thorough review of Pakistan's trade connection with BRICS nations provides policymakers and companies with useful information to increase trade competitiveness and promote sustainable economic development.

Finance act 2020 and its impact on Nigeria tax revenue generation

Wed, 18 Sep 2024 00:00:00 +0800

Taxation is one of the essential sources of a country’s revenue generation. Therefore, certain regulations and policies is needed to be put in place to foster it. The objective of this study was to examine the impact of ‘Finance act 2020 on Nigeria Tax Revenue Generation. Finance Act was measured using Company Income Tax (CIT), Personal Income Tax (PIT) and Value Added Tax (VAT) while Nigeria Tax Revenue Generation was measured using the Total Tax Collected. The study adopted ex-post facto research design. Data was obtained from the Federal Inland Revenue Service. The data was analyzed using E-views 9.1 under which Descriptive statistics was used to establish the relationship between the independent variables and the dependent variable. Regression Analysis was also used in the analysis. The data was also subjected to test for normality and stationarity. It was discovered that the amended Company Income Tax and amended Value Added Tax had a positive and significant influence on the Total Tax Collected by the Government. It was also found that the amended Personal Income Tax had a negative and no significant influence on the Total Tax Collected. Recommendations from this study include that the Government should critically examine the regulations they come up with before enforcing it. This study also recommends that the Federal Inland Revenue Service, the department saddled with the responsibility of tax collection, should review the tax system and policies with the aim of plugging loopholes in the existing tax system thereby preventing citizens from evading and avoiding taxes.

Optimizing the Digital Marketing Landscape: A Comprehensive Exploration of Artificial Intelligence (AI) Technologies, Applications, Advantages, and Challenges

Junaid Rahman, Asif Raihan, Tipon Tanchangya, Mohammad Ridwan — Fri, 27 Sep 2024 00:00:00 +0800

This study investigates the profound influence of artificial intelligence (AI) technologies, including machine learning (ML), deep learning (DL), and big data, on improving marketing efficiency. The goal is to examine how these AI tools enhance marketing tactics and tackle the obstacles that marketers encounter. This study employs a thorough literature review technique to investigate the various uses and advantages of AI in tailoring advertising, forecasting customer behavior, and improving customer engagement. The results demonstrate that AI greatly enhances marketing accuracy and productivity through the automation of repetitive processes, the facilitation of real-time personalization, and the provision of more profound insights into client preferences. Nevertheless, obstacles such as the requirement for data of exceptional quality, significant infrastructure, and proficient experts impede the complete realization of AI's capabilities. Businesses should prioritize investing in reliable data management systems, implementing cloud-based AI solutions to lower expenses, and maintaining openness in data utilization to establish consumer trust. In order to properly manage the intricacies of AI in marketing, the report suggests integrating AI with human expertise, consistently assessing AI performance, and precisely establishing company objectives to ensure the effective alignment of AI tools. Implementing these tactics can improve marketing results and cultivate a customer experience that is driven by data and tailored to individual preferences.

A new approach to assessing a company’s financial indicators: taking into account business and financial risks

Peter Brusov — Wed, 16 Oct 2024 00:00:00 +0800

There are two main methods for estimating the value of assets. The first method is the well-known CAPM (Capital Asset Pricing Model), which uses the risk-free rate as the initial return and takes into account only the business risk associated with investing in a specific asset, and not in the market as a whole. The second method is associated with the use of one of two main theories of capital structure (Brusov–Filatova–Orekhova (BFO) theory and Modigliani–Miller (MM) theory), which take into account only the financial risk associated with the use of debt financing and allow the calculation of all financial indicators of a company of arbitrary age (BFO theory) or perpetuity one (MM theory).

The article develops a new approach related to the use of the company’s current profitability, taken from the annual report, as a seed profitability of an asset (company). As part of the new approach, a methodology has been developed that makes it possible to calculate all the main financial indicators of a company within the framework of capital structure theories, taking into account both financial and business risks. Transition from CAPM to a new methodology significantly improves the accuracy of the estimate. The new approach, unlike CAPM, has forecasting capabilities.