Value Creating of Banks' Corporate Citizenship Reporting

The purpose of this study is to introduce corporate citizenship reporting for banks as a type of financial and non-financial reporting and to investigate the consequences and factors affecting the information content (value creating) of this type of reporting. The basic question is corporate citizenship reporting leads to the value creation of financial and non-financial reporting of banks? First, corporate citizenship reporting was conceptualized and then research data were collected for 12 banks during the years 2011 to 2021. This research is a quantitative and experimental research in the field of accounting and finance in terms of data collection and to measure the factors affecting corporate citizenship reporting and also the relationship between these variables and the consequences and value of the bank, the structural equations approach and least squares method (PLS) is used. The direct path related to this relationship with a coefficient of 0.271 indicates that the value creation of the bank at a rate of 27% (with a t-statistic equal to 6.897) is explained through corporate citizenship reporting. This means that with increasing disclosure of corporate citizenship reporting indicators, the value of the bank increases. Banks can influence the value creation of a bank by providing corporate citizenship reporting and disclosing financial and non-financial indicators, by reducing the company's capital costs, reducing agency costs, increasing liquidity, and improving financial performance and financial reporting quality, lead to an increase in the market value of the bank's stock and ultimately increase the value of the bank.