Corporate Social Responsibility on Bank Financial Performance in Nigeria
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This study examines the effect of corporate social responsibility on bank financial performance in Nigeria. Secondary data was used for the study and it was obtained from the financial statement of audited annual reports and accounts of two (2) selected deposit money banks listed on the Nigerian Stock Exchange for the period 2011-2015. The data was tested for unit root using panel unit root process of PP Fisher Chi Square and it was shown that the data were stationary at levels. Regression result based on fixed effect regression which was suggested by Hausman test for randomization of panel result indicates that a positive relationship exists between Corporate Social Responsibility and profitability of banks financial performance and the relationship is statistically significant and in line with a priori expectation. Corporate Social Responsibility was negatively related to Return on Assets of Banking Industry in Nigeria. The result indicates that a unit increase in Corporate Social Responsibility will result in a corresponding decrease in performance of the banking sector proxied by return on asset (ROA) by a margin of 70.00%. There is a positive relationship between Corporate Social Responsibility was positively signed and statistically significant (P<0.05). It was concluded that Corporate Social Responsibility help to improve the bank’s performance rating. It was however recommended among others that since Corporate Social Responsibility made the highest contribution to Earnings per share more than all the other performance variables, management of the bank should ensure that to keep shareholders satisfied with the running of the bank, they must invest in corporate social responsibility as the return to shareholders is great as shown by the result of the study.
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