Corporate Governance and Corporate Social Performance in the Listed Banks in Bangladesh: The Moderating Role of Sustainable Finance Committee
Md. Rabiul Kabir
Department of Business Administration
Stamford University Bangladesh
DOI: https://doi.org/10.63817/jmagp.01.2025.001
Received January 6, 2025
Revised January 22, 2025
March 11, 2025
Accepted March 26, 2025
Abstract
Purpose – The study examines the impacts of Corporate Governance (CG) characteristics on Corporate Social Performance (CSP). It also investigates the role of the Sustainable Finance Committee (SFC) as a moderator in the relationship between CG and CSP.
Design / Methodology / Approach – The data on Bank social performance and board characteristics were collected by content analysis of the annual reports and website of 30 listed commercial banks in Bangladesh covering ten (10) years, from 2013 to 2022. Hence, the final sample covers 300 observations. AMOS 23 has been used to evaluate the moderating and direct effects of CG on CSP.
Findings- This study reveals that most CG variables significantly impact social performance. SFC has partially moderated the relationship between CG variables and social performance. The presence of a sustainable finance committee moderates the relationship between board
gender diversity and social performance.
Research Limitations / Implications- The study’s main challenge was finding valid and accurate instruments to measure social performance. This study provides valuable insights for regulatory bodies and companies, helping them design policies that support better corporate practices and societal well-being.
Originality / Value- This study examines SFC as a moderating factor in the relationship between CG and social performance, an aspect often overlooked in existing literature.
Keywords: Corporate governance; Social performance; Sustainable finance committee (SFC); Banking sector in Bangladesh.
Paper Type: Research Paper