Impact of Corporate Social Responsibility on Financial Performance of Selected Deposit Money Banks in Nigeria

Abstract

The growing proliferation of Deposit Money Banks' branches across the country call for commensurate growth in the demonstration of their corporate social responsibility practices. The correlation between such practices and performances of firms is no longer a moot matter. This paper examines the impact of corporate social responsibility on financial performance of Deposit Money Banks (DMBs) in Nigeria period from ranging 2013 to 2017. The corporate social responsibility (independent variable) is proxied with health and sports expenditures while performance (dependent variable) is proxied with profitability as Profit After Taxes (PAT). The study utilizes ex-post facto design because of nature of the secondary data. Data collected on the study variables are run in E-Views 9 to produce regression output. The results show that expenditure on health (as corporate social responsibility) has positive and insignificant impact on profitability. Also, the result indicates that expenditure on health ((as corporate social responsibility) has positive and significant impact on profitability. The research concludes that corporate social responsibility has relationship with the performance of Deposit Money Banks (DMBs) Nigeria for the period under study. The study recommends that the management of Nigerian deposit money banks should reduce and strictly monitor their corporate social responsibility health expenditure in order to enhance their performance. The study also recommends that the management of Nigerian DMBs should sustain and further increase their corporate social responsibility expenditure on sports in order to increase their performances.