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Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria

Author

Listed:
  • Joseph UGOCHUKWU MADUGBA

    (Michael Okpara University of Agriculture Umudike, Nigeria)

  • Michah C. OKAFOR

    (Michael Okpara University of Agriculture Umudike, Nigeria)

Abstract

The major purpose of the study is to examine the Impact of CSR on Earning Per Share (EPS), Return On Capital Employed (ROCE) and Dividend Per Share (DPS) of listed banks in Nigeria. It is believed by the researchers that this study will be of immense use to the government, financial institutions and the general public. The study covered the period 2010-2014. The Impact of EPS, ROCE and DPS was tested on CSR. Simple regression analysis was employed by the researchers in testing the data collected from the annual published financial statement of the selected banks. The regression result showed that EPS and DPS have negative significant relationship with CSR while ROCE has a positive significant relationship with CSR. The research recommends that the government should by way of legislation through regulatory authorities, compel financial institutions to embark actively in CSR, also CSR should be seen as an investment and reported as such in the financial statements of financial institutions.

Suggested Citation

  • Joseph UGOCHUKWU MADUGBA & Michah C. OKAFOR, 2016. "Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria," Expert Journal of Finance, Sprint Investify, vol. 4, pages 1-9.
    • Handle: RePEc:exp:finnce:v:4:y:2016:i::p:1-9
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    References listed on IDEAS

    as
    1. Joseph UGOCHUKWU MADUGBA & Michah C. OKAFOR, 2016. "Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria," Expert Journal of Finance, Sprint Investify, vol. 4(1), pages 1-9.
    2. Roberto Garcia-Castro & Miguel Ariño & Miguel Canela, 2010. "Does Social Performance Really Lead to Financial Performance? Accounting for Endogeneity," Journal of Business Ethics, Springer, vol. 92(1), pages 107-126, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Joseph UGOCHUKWU MADUGBA & Michah C. OKAFOR, 2016. "Impact of Corporate Social Responsibility on Financial Performance: Evidence from Listed Banks in Nigeria," Expert Journal of Finance, Sprint Investify, vol. 4(1), pages 1-9.
    2. Obey Dzomonda & Olawale Fatoki, 2020. "Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)," IJERPH, MDPI, vol. 17(20), pages 1-21, October.
    3. N. V. V. Satyanaryana Puchakayala & Udaya Bhaskar Nallamalli & Visalakshi Narapareddi, 2023. "Corporate social responsibility: a way of enhancing financial performance—evidence from select NSE listed companies," SN Business & Economics, Springer, vol. 3(7), pages 1-31, July.
    4. Ibrahim Sameer, 2021. "Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies," Future Business Journal, Springer, vol. 7(1), pages 1-21, December.

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    More about this item

    Keywords

    Corporate Social Responsibility; Earnings Per Share; Return on Capital Employed; Dividend Per Share;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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