Impact of Economic Responsibility and Ethical Responsibility on Financial Performance in Banking Sector of Pakistan

Abstract

This study aims to assess the impact of economic responsibility and ethical responsibility on financial performance in banking sector of Pakistan. This study has used economic responsibility and ethical responsibility as independent variables. However, financial performance is used as the dependent variable. Meanwhile, banking sector of Pakistan is the sector finalized for assessing the relationship between economic responsibility, ethical responsibility and financial performance. To investigate the relationship, quantitative research method is used. Primary data is collected with the help of adopted structured questionnaire based on 5 Likert scale (1=Strongly Disagree and 5=Strongly Agree). Questionnaires were distributed amongst the employees working in banking institutions of twin cities in Pakistan and 300 responses are gathered from the respondents through convenience sampling technique. Data collected from the respondents is analyzed with the help of various statistical tests (correlation and regression analysis) through SPSS Software (SPSS 21). Based on the findings, economic responsibility and ethical responsibility positively impacts financial performance in banking sector of Pakistan. Conclusively, findings of this study prove that increase in economic responsibility and ethical responsibility brings a definite increase in financial performance in banking sector of Pakistan.