The Impact of Corporate Social Responsibility and FinTech on the Financial Performance of Listed Companies Using Bayesian Panel Vector Error Correction Models
Keywords:
Dynamic Liquidity Management, Financial Transparency , Financial Performance , FinTech , Corporate Social ResponsibilityAbstract
Objective: This study aims to examine the effect of corporate social responsibility (CSR) and financial technologies (FinTech) on the financial performance of listed companies in the Tehran Stock Exchange using Bayesian panel VAR models.
Methods and Materials: This applied and descriptive-analytical research analyzed panel data from 107 listed companies during 2015–2024. Financial performance was measured using return on assets (ROA) and return on equity (ROE). CSR was assessed through content analysis of annual reports across six dimensions, while FinTech performance was measured as the ratio of internet and mobile transaction value to GDP. Data analysis employed Bayesian Panel VAR (PBVAR) models, unit root tests, Kao and Johansen–Juselius cointegration tests, and impulse response analysis to capture long-term dynamics among variables.
Findings: The results confirmed significant long-term cointegration among FinTech, CSR, and financial performance variables. FinTech showed a positive and significant effect on both ROA and ROE, reflecting its crucial role in enhancing financial efficiency and profitability. CSR also had a positive and stable influence, promoting investor confidence and mitigating financial risk. The error correction model indicated an adjustment speed of 9% per year toward long-term equilibrium after short-term shocks. Impulse response analysis demonstrated that positive FinTech shocks lead to notable increases in firms’ financial performance.
Conclusion: The integration of CSR and FinTech fosters sustainable value creation, improves financial transparency, strengthens stakeholder trust, and enhances profitability and competitive advantage among listed companies.
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Copyright (c) 2025 Mehrdad Farhadi, Gholamreza Farsad Amanollahi, Mohammadreza Mehrabanpour, Amirreza Keyghobadi (Author)
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