Journal of Business Ethics

, Volume 35, Issue 2, pp 97–109 | Cite as

The Link Between Corporate Social and Financial Performance: Evidence from the Banking Industry

  • W. Gary Simpson
  • Theodor Kohers


The purpose of this investigation is to extend earlier research on the relationship between corporate social and financial performance. The unique contribution of the study is the empirical analysis of a sample of companies from the banking industry and the use of Community Reinvestment Act ratings as a social performance measure. The empirical analysis solidly supports the hypothesis that the link between social and financial performance is positive.

Community Reinvestment Act Rating financial performance social performance 


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Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • W. Gary Simpson
    • 1
  • Theodor Kohers
    • 2
  1. 1.Department of Finance, College of Business AdministrationOklahoma State UniversityStillwaterU.S.A.
  2. 2.Department of Finance and Economics, College of Business and IndustryMississippi State UniversityMississippi StateU.S.A.

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