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This study examines the factors which affect the adoption of corporate social responsibility (CSR) disclosure practices in line with Global Reporting Initiative (GRI) guidelines in Brazil's banking industry.

The analysis comprised the deposits (demand and savings), fee income, employee expenses, regulatory capital (Basel ratio) and ownership structure of all Brazilian banks from 2006 to 2017. The sample totalled 1,613 firm-year observations. The authors used three binary regression models (logit, probit and complementary log-log) in order to choose the one that best fits the model proposed. The authors controlled for size, profitability, leverage and liquidity.

The main results show positive relationships between CSR reporting and both savings deposits and fee income. The authors also found that state-owned (foreign private-owned) banks have a positive (negative) relationship with probability of CSR disclosure. A negative relationship was found between CSR disclosure and regulatory capital, indicating that banks are more likely to publish GRI reports as they approach the minimum levels of the Basel ratio.

Some banks may disclose CSR reports which do not adhere to the GRI guidelines; these were not captured in this study.

The estimated model aids understanding of factors influencing CSR disclosure in the banking industry in an emerging economy, which may help bank regulators to adopt new approaches in their supervisory and regulatory roles.

This work is the first to document that both fee income and banks' regulatory capital are related to CSR disclosure. Furthermore, this study investigates the entire banking industry of a Latin American country over the longest and most up-to-date period the authors are aware of.