The
results applying the regression in model 1 are presented in Table 3. This model
investigates the effects of voluntary CSR activities on financial performance.
The first 3 columns, display the estimations for equation (2) using ROA as a
measure of FP, following the last 3 columns displays estimations for equation
(2) using ROE as a measure of FP. Our model overall is statically significant
(P-value <0.01) and the model for ROA shows Adj. R-squared equal 42.2%; and for ROE the Adj. R-squared is 20.1% respectively, indicating the strength power explanatory of our model. This result, also displayed the highest VIF - variance inflation factor value as 2.481 with a mean of 1.211 for a CSR_Dindex variable, suggesting that the multi-collinearity does not appear to be a problem. On the other hand, also the autocorrelation does not appear to be a problem because our highest value of Durbin-Watson test was 2.102, so we reject the residual autocorrelation hypothesis. Also, we included the AR (1) term. To solve the endogeneity problem we carried out by the Hausman's test (Hausman and Taylor, 1981) for all models. Particularly, for model 1 the first 3 columns in Table 3, it can be observed that the coefficient ?1 on CSR_Dindex variable is significantly positive (?1 = 0.0581, P-value <0.01 and t-stat = 1.240), for the ROE measure of FP it can be observed that similar the coefficient ?1 on CSR_Dindex variable is significantly positive (?1 = 0.0049, P-value <0.01and t-stat = 2.398, respectively). Regarding our four control variables, it can be observed that all are statistically significant (at 0.1, 0.05 and 0.01 respectively) and positive as excepted, debt ratio variable is negative suggesting that our models are consistent. Jointly the result implies the presence of voluntary CSR activities in FP behavior. The findings confirm the expectation based on the stakeholder's theory, and led to support our hypothesis. H0 and, H1. Suggesting that Mozambican banking industry are voluntary socially responsible and with this bank behavior increases their financial performance. Our findings are in line Wu and Shen (2013); Platonova et al. (2016) studies and opposes the findings of Bae, Kang, and Wang (2011); Kamal (2013) studies. (Insert around here Table 3) Regarding the regression in model 2, that investigate the impact of each categories of voluntary CSR activities (CSR_D1 = customer and products, CSR_D2 = local community, CSR_D3 = environmental protection, CSR_D4 = human resource policies) on the FP measure (ROA and ROE) we can observe in Table 4, that each individual voluntary CSR activity are positively related with FP, suggesting that the banks use this for elements of social responsibility behavior as a tools to increase FP, except for environmental protection initiative category (CSR_D3) it means that the banks invest less in the environmental protection activity comparatively to another category of CSR activities present in our research. The insignificant impact of environmental initiative ((?1 = 0.001, P-value > 0.01) on FP, is maybe because
the banks don’t produce direct goods, so they careless about the environment
and consecutively do not disclose information concerning this category of
voluntary CSR activity. Or on the other hand, in agreement with the study of
Kvasi?, Cerovi? and Drazenovi? (2016); this can
be explained by the fact that in non-developed countries, bank managers are not
interested in pursuing the environmental issues as opposed to developed
countries where managers focus their CSR efforts on environmental issues and
issues that contribute to the development of the community. These
findings, also suggest that the individual element of voluntary CSR activity do
not affect the FP. Therefore, this result indicates no statistically
significant association between the financial performance and all the
individual categories of CSR behavior, implying no sufficient evidence to
support our hypothesis H2.

On the other hand, we
can draw attention to the highest significant, and positive coefficient on
customer and products variable (?1 = 0.6271, P-value < 0.05 and t-stat = 2.011) implying that the banks are disclosing firstly information relative to their costumer and products, ignoring other categories of voluntary CSR behavior. This means that bank managers mostly disclose information related to customer and product. This happens because the bank managers do not have enough knowledge about the advantage to participle on all individual categories of voluntary CSR behavior. On the other hand, maybe because Mozambique is an under-developed country and the bank managers do not have an incentive to participate in full CSR activities. Because, in concordance with Kvasi?, Cerovi? and Drazenovi? (2016); the level of development of the country is fundamental to determine the CSR practices of the bank managers. On the other hand, the bank managers are mostly involved in CSR behavior via costumer & product category, maybe they need to increase the fidelity of their customers, influence new customers and create new relations with the customer to promoting new deposits, which will have a great effect on the banks' financial performance. These results are similar to the international research of Kvasi?, Cerovi? and Drazenovi? (2016); Kiliç (2016) and opposes the findings of Botshabelo et al. (2017). This results supports our hypothesis H2a, implying that the Mozambican Banking industry primarily disclose information regarding their costumer and products and services. Generally, our model 3 is significant and explanatory as presented in (Table 4), for the models of ROA (Adj. R-squared 53.4%), and ROE (Adj. R-squared 28.6%). Also, we carried out the Hausman`s test (Hausman and Taylor, 1981) for all models to solve the endogeneity problem, additional, we checked the multi-collinearity carried out by the VIF - Variance Inflation Factor statistic and the highest value was 2.231 implying that for our models the multi-collinearity does not appear to be a problem. Therefore, we carried out the Durbin-Watson statistic to check the autocorrelation problems, similarly the result presented in table 3, our highest value of Durbin-Watson was 1.787, so we reject the residual autocorrelation hypothesis. (Insert

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