Corporate Social Responsibility, Efficiency, and Risk in US Banking
Banks have faced increasing attention regarding their ability to balance Corporate Social Responsibility (CSR) initiatives, operational efficiency, and credit risk management, particularly in the wake of global financial challenges. This study examines the interplay between CSR, efficiency, and cred...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-01-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/13/1/10 |
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| author | Fathi Jouini Mohamed Amine Chouchen Ahlem Selma Messai |
| author_facet | Fathi Jouini Mohamed Amine Chouchen Ahlem Selma Messai |
| author_sort | Fathi Jouini |
| collection | DOAJ |
| description | Banks have faced increasing attention regarding their ability to balance Corporate Social Responsibility (CSR) initiatives, operational efficiency, and credit risk management, particularly in the wake of global financial challenges. This study examines the interplay between CSR, efficiency, and credit risk in 131 US banks from 2010 to 2018. Using the Choquet integral, two-step Data Envelopment Analysis, and a dynamic panel with the Generalized Method of Moments, the findings reveal a virtuous circle between CSR and credit risk, where CSR enhances credit risk profiles. Similarly, efficiency and risk exhibit mutual reinforcement. However, a vicious circle is identified between CSR and efficiency, indicating trade-offs between CSR objectives and operational efficiency. These insights guide policymakers and bank managers in optimizing this balance. |
| format | Article |
| id | doaj-art-ba05828d27144c3086210ca4b9213887 |
| institution | Kabale University |
| issn | 2227-9091 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj-art-ba05828d27144c3086210ca4b92138872025-01-24T13:48:19ZengMDPI AGRisks2227-90912025-01-011311010.3390/risks13010010Corporate Social Responsibility, Efficiency, and Risk in US BankingFathi Jouini0Mohamed Amine Chouchen1Ahlem Selma Messai2Department of Accounting, School of Business, King Faisal University, Al-Ahsa 31982, Saudi ArabiaDepartment of Finance and Accounting, FSEG Sousse, University of Sousse, Sousse 4023, TunisiaDepartment of Finance, School of Business, King Faisal University, Al-Ahsa 31982, Saudi ArabiaBanks have faced increasing attention regarding their ability to balance Corporate Social Responsibility (CSR) initiatives, operational efficiency, and credit risk management, particularly in the wake of global financial challenges. This study examines the interplay between CSR, efficiency, and credit risk in 131 US banks from 2010 to 2018. Using the Choquet integral, two-step Data Envelopment Analysis, and a dynamic panel with the Generalized Method of Moments, the findings reveal a virtuous circle between CSR and credit risk, where CSR enhances credit risk profiles. Similarly, efficiency and risk exhibit mutual reinforcement. However, a vicious circle is identified between CSR and efficiency, indicating trade-offs between CSR objectives and operational efficiency. These insights guide policymakers and bank managers in optimizing this balance.https://www.mdpi.com/2227-9091/13/1/10CSRefficiencyintegral of ChoquetDEA two stagesbanking riskcorporate sustainability |
| spellingShingle | Fathi Jouini Mohamed Amine Chouchen Ahlem Selma Messai Corporate Social Responsibility, Efficiency, and Risk in US Banking Risks CSR efficiency integral of Choquet DEA two stages banking risk corporate sustainability |
| title | Corporate Social Responsibility, Efficiency, and Risk in US Banking |
| title_full | Corporate Social Responsibility, Efficiency, and Risk in US Banking |
| title_fullStr | Corporate Social Responsibility, Efficiency, and Risk in US Banking |
| title_full_unstemmed | Corporate Social Responsibility, Efficiency, and Risk in US Banking |
| title_short | Corporate Social Responsibility, Efficiency, and Risk in US Banking |
| title_sort | corporate social responsibility efficiency and risk in us banking |
| topic | CSR efficiency integral of Choquet DEA two stages banking risk corporate sustainability |
| url | https://www.mdpi.com/2227-9091/13/1/10 |
| work_keys_str_mv | AT fathijouini corporatesocialresponsibilityefficiencyandriskinusbanking AT mohamedaminechouchen corporatesocialresponsibilityefficiencyandriskinusbanking AT ahlemselmamessai corporatesocialresponsibilityefficiencyandriskinusbanking |