Corporate social responsibility and bank liquidity creation
Document Type
Journal Article
Publication Title
Journal of Financial Research
Volume
46
Issue
2
First Page
343
Last Page
382
Publisher
Wiley
School
School of Business and Law
RAS ID
54554
Funders
Accounting and Finance Association of Australia and New Zealand (AFAANZ), Grant Number: AFAANZ Research Grant 2019
Abstract
Under the stakeholder theory hypothesis, reputable corporate social responsibility (CSR) banks are expected to attract more loans and deposits, which in turn strengthens their ability to create liquidity. Our findings support this view. Further analyses reveal that the positive effect of CSR on liquidity creation differs depending on bank size, bank capital, and type of financial crisis. In addition, deposit growth, loan growth, lending rate, and funding rate are potential channels through which CSR influences bank liquidity creation. The findings are not driven by an endogeneity issue.
DOI
10.1111/jfir.12322
Access Rights
subscription content
Comments
Zheng, C., Cheung, A., Zhang, J., & Haider, I. (2023). Corporate social responsibility and bank liquidity creation. Journal of Financial Research, 46(2), 343-382. https://doi.org/10.1111/jfir.12322