Date of Publication: May 10, 2021

Author: Mashiyat Tasnia , Syed Musa Syed Jafaar Alhabshi and Romzie Rosman

Summary:

This study conducts a systematic literature review on corporate social responsibility (CSR) disclosure and Islamic and conventional banks’s financial performance. Several studies show a relation between CSR disclosure and bank performance. This research critically reviews the theoretical perspectives, impacts, issues and suggests future research based on the reviewed articles. This study uses a systematic review method to analyse 34 articles published between 1994 and 2020. The articles are published in 28 different journals, and notable journals include the Journal of Banking and Finance, Journal of Business Ethics and Review of Quantitative Finance and Accounting. This study also highlighted the issues, gap of CSR indicators, performance evaluation of conventional and Islamic banks and theoretical underpinnings. The findings of the systematic review show that the majority of the countries still follow voluntary CSR disclosure. Besides, studies emphasizing CSR and Islamic banks are limited. The theoretical perspective of Islamic banks CSR is required to develop based on Islamic principle. Lastly, this study highlighted 25 future research questions based on the review of prior literature. Future research questions will help researchers fill the existing research gap and contribute to CSR research in banking.

Link to Full Reading:

https://www.tandfonline.com/doi/full/10.1080/20430795.2021.1922063