CORPORATE SOCIAL RESPONSIBILITY PRACTICES AND THEIR EFFECTS ON FINANCIAL PERFORMANCE. A STUDY OF DEPOSIT MONEY BANKS (DMBS) IN NIGERIA
Abstract
This study investigated the effect of corporate social responsibility (CSR) practices on financial performance of deposit money banks (DMBs) in Nigeria from 2012 to 2023. The study population comprised 25 quoted DMBs listed on the Nigerian Exchange Group (NGX), with a sample size of 8 DMBs selected based on annual reports. Secondary data from audited financial statements and NGX publications were utilized, with variables including CSR expenditures, Return on Assets (ROA), Return on Equity (ROE), Earnings Per Share (EPS), and firm size. Panel data analysis employing Ordinary Least Squares (OLS) regression techniques revealed a significant negative relationship between CSR expenditure and both ROA and ROE, indicating that higher CSR spending was associated with lower financial performance in terms of these metrics. respectively, suggesting a detrimental effect of CSR expenditure on ROA and ROE. However, no significant effect was observed on EPS. The study recommended that strategic alignment, efficiency, stakeholder engagement, a long-term perspective, and continuous monitoring of CSR programs for DMBs to balance social responsibility with financial sustainability effectively.
This article is available as a PDF download
Published in UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT
ISSN: 1596-9911
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
ELECTRONIC TAX SYSTEM AND TAX COMPLIANCE, EVIDENCE FROM NIGERIA TAX JURISDICTION.
THOMAS AYOBAMI BABARINDE, OLADELE JOHN AKINYOMI, JOSHUA ODUTOLA OMOKEHINDE, TAOFIK AKINWUMI TALEAT
Jul 17, 2026
The study explores the impact of e-tax on tax submission conduct among taxpayers in Nigeria. To rea...
View ArticleTHE IMPACT OF GLOBAL TRENDS IN DIGITAL PAYMENT SYSTEMS ON FINANCIAL PERFORMANCE AND OPERATIONAL EFFICIENCY OF LISTED DEPOSIT MONEY BANKS: EVIDENCE FROM MOBILE BANKING AND OTHER DIGITAL CHANNELS
EBE, EMMANUEL CHUKWUMA, NWANKWO, PETER EMEKA, OKEREKE, CHIMAOBI DARLINGTON
May 27, 2026
This study examines the effect of global trends in digital payment systems on the financial perfor...
View ArticleEFFECT OF DEBT CAPITAL ON PROFITABILITY OF LISTED FOOD AND BEVERAGE MANUFACTURING FIRMS IN NIGERIAN EXCHANGE GROUP FROM 2011-2022
DR. ELEKIMA, AMBIYE OKONTE, DR. WOMENAZU, HARRY, SUNDAY
May 20, 2026
The debt capital has been the major source of manufacturing companies’ fund for the purpose of p...
View Article