Corporate social Responsibility and Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract

Corporate social responsibility (CSR) is a fast growing concept in the
banking industry with little attention paid to its linguistic. This paper
is an empirical analysis of the impact of corporate social
responsibility on financial performance of listed deposit money banks
in Nigeria for a period of 2006 to 2013 (8years). Nine out of seventeen
Banks were selected as sample of the study. The study uses secondary
data from fact book and financial statements of Nigerian Stock
Exchange (NSE). While total expenditure on corporate social
responsibility serves as the independent variable, the dependent
variables of financial performance were proxied by Return on Assets
(ROA), Earnings per share (EPS) and Liquidity (LQT). The result
reveals that CSR has a significant positive impact on ROA and EPS.
CSR was also found to have a negative impact on LQT. The paper
concludes that there is significant impact of corporate social
responsibility on financial performance of deposit money banks in
Nigeria, therefore, recommends to the banking sector to take CSR
commitment as an important factor in order to boost their
profitability.