Corporate Social Responsibility and Financial Performance Of Quoted Deposit Money Banks in Nigeria

Asian Journal of Science and Technology, 8(12),7183-7191, 2017

9 Pages Posted: 21 Feb 2018

See all articles by Nestor Amahalu

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy

Ezechukwu Beatrice

Federal Polytechnic, Oko

Obi Chinyere

University of Nigeria Enugu Campus

Date Written: February 18, 2018

Abstract

This study aims at ascertaining how corporate social responsibility (CSR) relates with financial performance of quoted deposit money banks in Nigeria from 2010-2016. Specifically, this study aims to ascertain the extent of relationship that exists between donation and return on assets; determine the extent of relationship that exists between donation and return on equity and to evaluate the extent of relationship between donations and market-to-book value of quoted deposit money banks in Nigeria. This study employed ex-post facto research design. The sample size of this study consists of the fifteen quoted deposit money banks in Nigeria. Pearson Coefficient Correlation, Panel Least Square (PLS) regression analysis and Granger Causality test were employed via E-View 9.0. The study found a significant positive relationship between return on asset, return on equity, market-to-book value and donations at 5% level of significance. The implication of the findings is that CSR implementation maximizes future returns for deposit money banks in Nigeria. It was recommended among others that since CSR has a positive and significant relationship with financial position, deposit money banks should engage in CSR practices as this will guarantee a safer environment for smooth operations and maximisation of shareholders wealth.

Keywords: Corporate Social Responsiblility, Financial Performance, Donations

JEL Classification: M18, M43, M44

Suggested Citation

Amahalu, Nestor and Beatrice, Ezechukwu and Obi, Juliet, Corporate Social Responsibility and Financial Performance Of Quoted Deposit Money Banks in Nigeria (February 18, 2018). Asian Journal of Science and Technology, 8(12),7183-7191, 2017. Available at SSRN: https://ssrn.com/abstract=3125631

Nestor Amahalu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria
+2348063393668 (Phone)

Ezechukwu Beatrice

Federal Polytechnic, Oko ( email )

PMB 021 Aguata
Anambra +234
Nigeria
08033887708 (Phone)

Juliet Obi

University of Nigeria Enugu Campus ( email )

Department of Accountancy
Box 15540, Enugu
Enugu, NC Enugu 234
Nigeria

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