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ORCID

Marta Idasz-Balina 0000-0002-4129-8259

Rafał Balina 0000-0001-6304-8149

Adam Zając 0000-0002-8511-8117

Krzysztof Smoleń 0000-0001-6674-2689

Keywords

Corporate Philanthropy, Social Activity, Corporate Social Responsibility, Sustainability, Financial Institutions, Cooperative Bank, Financial Efficiency

Abstract

The aim of the study is to establish and analyze the relationship between expenditure on corporate philanthropy and fi nancial performance of cooperative banks in Poland. The study covered 70 cooperative banks, where the level of expenditure on social activities was above the average in the sector. The research was carried out using the Generalized Method of Moments for the years 2013–2020. Studies have shown positive importance of corporate philanthropy in shaping fi nancial effi ciency. The research also indicated a signifi cant shift in the time between spending on social activities and the fi nancial results obtained. The obtained results indicate an area that has not been thoroughly analyzed: the impact of spending on social activities in the context of shaping the fi nancial efficiency considering time shifts. This knowledge may result in more intentional creation of the effi ciency policy by management, considering corporate philanthropy, Corporate Social Responsibility, or the introduction of appropriate regulatory changes for the assessment of fi nancial institutions by responsible entities.

Acknowledgments

We would like to thank Professor Krzysztof Obój and Professor Aneta Hryckiewicz-Gontarczyk from Koźmiński University for their very valuable comments on an earlier version of our manuscript and anonymous referees for their constructive reviews which have contributed to improved quality of our article.

First Page

63

Last Page

79

Page Count

17

Received Date

22.08.2023

Revised Date

06.10.2023

Accept Date

22.10.2023

Online Available Date

28.12.2023

DOI

10.7172/2353-6845.jbfe.2023.2.4

JEL Code

A13, G41, M14, G21

Publisher

University of Warsaw

Included in

Economics Commons

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