Document Type : Original Research
Authors
Department of Business Administration, Shahjalal University of Science and Technology, Sylhet, Bangladesh
Abstract
The study sought to explore the effect of Social Capital (SC) on banks’ financial performance and whether this effect is mediated by competitive advantage (CA) or not. Secondary data were collected from banks’ nine years’ annual reports (2014-2022). By stratified sampling method, 20 commercial banks in Bangladesh were selected. Findings revealed that the influence of SC on ROA and NIAT is significant and CA mediates between them. For one unit increase in SC, ROA and NIAT will increase by 0.274 and 0.508 units respectively. However, there is no significant effect of SC on ROI. SC has a significant impact on CA also. One unit increase in SC results in a 0.822 unit increase in CA and vice versa. The findings of the study will have implications for policymakers like Bangladesh Bank, government, bankers, depositors, borrowers, and other stakeholders as enrichment of social capital is likely to improve banks’ financial performance through the attainment of CA.
Keywords
Main Subjects
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©2024 The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, as long as the original authors and source are cited. No permission is required from the authors or the publishers.
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