Economic CSR refers to the extent to which firms fulfill their responsibilities and obligations

related to business operations in order to maintain economic growth. Philanthropic CSR refers to
the extent to which firms fulfill their responsibilities with regard to business activities that are
not mandated, that is, those in which they engage not for business purposes, but for ethical
reasons. Strategic CSR, refers to the extent to which firms’ strategies and visions are aligned
with social issues.
The emerging issue that is highlighted in this paper is the relationship between employees’
corporate social responsibility (CSR) perception and their organizational identification in a
Chinese context. The moderating effect of employees’ collectivist orientation on the relationship
between CSR perception and organizational identification is also examined.
The market timing theory is another conceptual framework that explains capital structure in
firms. A first version of this theory states simply that managers issue equity when they believe its
cost is irrationally low and repurchase equity when they believe its cost is irrationally high. A
second version assumes economic agents to be rational.
Determinants of banks profitability include common internal factors capital level, the deposits
level, the loans ratio, the risk level and banks costs and size.
Studies on the determinants of capital structure, which are inspired from the classical corporate
finance theories suggest the size, profitability, market-to-book ratio, collaterals and dividend
payout as the main variables that determine a firm capital level.
Collaterals in this paper are Total securities + cash and due from banks + derivatives + lands and
buildings + other tangible assets.
This study discussed that analyzing the capital structure and profitability of the two categories of
banks is important for investors, financial analysts and regulators. Understanding the differences
contributes to understand how following Islamic finance principles and being under Sharīah
governance could impact the bank profitability and financial decision, as well as investors
behavior.