Entrepreneurship, Corporate Social Responsibilities, and Innovation Impact on Banks' Financial Performance

Jianhua Wei; Rong Xiong; Marria Hassan; Alaa Mohamd Shoukry; Fares Fawzi Aldeek; J A Khader

doi:10.3389/fpsyg.2021.680661

Entrepreneurship, Corporate Social Responsibilities, and Innovation Impact on Banks' Financial Performance

Front Psychol. 2021 Aug 25:12:680661. doi: 10.3389/fpsyg.2021.680661. eCollection 2021.

Authors

Jianhua Wei¹, Rong Xiong², Marria Hassan³, Alaa Mohamd Shoukry⁴, Fares Fawzi Aldeek⁵, J A Khader⁶

Affiliations

¹ Department of Business Administration, Handan Economic and Technological Development Zone, School of Management Engineering and Business, Hebei University of Engineering, Handan, China.
² Department of Business Administration, Rajamangala University of Technology Krungthep, Bangkok, Thailand.
³ Department of Management Sciences, Islamia University of Bahawalpur, Bahawalpurm, Pakistan.
⁴ Arriyadh Community College, King Saud University, Riyadh, Saudi Arabia.
⁵ Administrative Sciences Department, Community College, King Saud University, Riyadh, Saudi Arabia.
⁶ College of Business Administration, King Saud University - Muzahimiyah Branch, Al-Muzahmiya, Saudi Arabia.

Abstract

The basic aim of this research was to check the impact of innovation, corporate social responsibilities (CSR), and entrepreneurship on the monetary performance of banks in five different countries: Qatar, Pakistan, China, the United States (US), and France. This research was conducted to measure the relationship of these factors and innovative workforce activities. The secondary data were collected from websites of twenty five banks in different countries, including Islamic and conventional banks. Different econometric analyses, such as descriptive statistical analysis, correlation coefficient test for measuring the interaction, and ordinary least square regression analysis for determining the impact of dependent and independent variables, were carried out. In the present study, entrepreneurship, CSR, and innovation were taken as independent variables. Board size, frequency of assemblies, and self-employed with large shareholders were included as sub-parts of entrepreneurship. On the other hand, the financial performance of banks was taken as the dependent variable. Return on assets (ROA) and return on equity (ROE) were considered parts of economic performance. The overall conclusions drawn in this study showed that there was a significant relationship between all the studied variables. The research provided useful insights into the long-debated question regarding the relevance of entrepreneurship and CSR.

Keywords: board size; corporate social responsibilities; entrepreneurship; financial performance; innovation; return on assets; return on equity.