General measures of financial performance fall into two broad
categories: investor returns and accounting returns. The basic idea of investor
returns is that, the return should be measured from the perspective of
shareholders. Whereas, accounting return measures of financial performance
focuses on how firm earnings respond to different managerial policies.

Accounting-based performance measures are return on assets (ROA),
total assets, sales growth, asset growth, return on equity (ROE) and operating
income growth. The ratio of debt to assets, operating leverage, and the
standard deviation of operating income were other accounting-based measures of
risk. Waddock and Graves (1997) measured financial performance using three
accounting variables: return on assets, return on equity, and return on sales,
providing a range of measures used to assess corporate financial performance by
the investment community. Accounting based indicators such as firms ROA, ROE.
and G1S capture a firm s internal efficiency. ROA is used to measure the
efficiency o f assets in producing income while ROE measures the perfomance of
the firm relative to shareholder investment. Some of the limitations of
accounting measures are that they only capture historical aspects ot the firm s
perfomance (Me Guire et al, 1986), they are subject to bias from managerial
manipulation and differences in accounting procedures (Branch, 1983; Brilloff,
1972). Accounting measures are also inward looking since they largely reflect
the efficiency of internal decisions and therefore do not reflect external
market responses to organisation. (Kipkemoi, 2010). Despite the limitations of
Accounting based measures. Moore (2001) found that accounting based measures
are better predictors for CSR than market based measures. The market-based
measures of financial Perfomance are forward looking and focus on the market
Perfomance. They are less susceptible to different accounting procedures and
represent the investor’s evaluation of the ability of a firm to generate future
economic earnings. (Me Guire et al, 1988). Cochran and Wood (1984), observe
that market-based perfomance measures reflect the notion that shareholders are
primary stakeholder group whose satisfaction determines the firm’s fate. They
further noted that the bidding and asking process of stock market participants
who rely on their perception of past, present and future stock returns and risk
determine the firm stock price and thus market value.

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CSR has a positive relationship with financial performance of Commercial Banks
in Nepal.




The whole purpose of this study is to
analyze the relationship between CSR and financial performance of commercial
banks of Nepal. In which CSR will be obtained from the survey questionnaire by
using A.B Carrols four dimensions’ questionnaire as dependent variables and
financial performance is taken as independent variable. The source of data will
be survey questionnaire and secondary data from respective sites of banks. The
secondary data consist of data collected from annual reports and various other

Out of 28
commercial banks I have distributed the survey questionnaires to all the 28 A
class commercial banks of Nepal. From which 18 banks has responded positively.
And the questionnaire has been filled up by top level managers of the
respective banks.




In the
current study, Corporate Social Responsibility Orientation (CSRO) instrument
will be used, a survey questionnaire will be distributed to all the top level
managers of the Nepalese A class commercial banks.

The survey
questionnaire model has been mailed by Prof A.B Carroll personally by himself,
and for that I am very much thankful to Mr Sunil K Jha sir, for referencing it
to me for my research work.

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