EFFECT OF FINANCIAL PERFORMANCE ON CORPORATE SOCIAL RESPONSIBILITY (CSR) OF LISTED DEPOSIT MONEY BANKS (DMBS) IN NIGERIA

Abstract

This study is an empirical analysis of the effect of Financial Performance on Corporate
Social Responsibility (CSR) of listed Deposit Money Banks (DMBs) in Nigeria for period
of 2014-2021. The listed DMBs are seven-teen (17) as at December 2012, out of which
a sample of 12 banks was selected. Specifically, the study seeks to determine the effect
of Return On Assets (ROA) and Return On Equity (ROE) on CSR of listed Deposit Money
Banks in Nigeria. The study adopted Correlational Design based on multiple regression
technique. Data were extracted from the audited annual reports and account of the
selected banks. The study reveals that ROA negatively, strongly and significantly
influences the CSR of listed DMBs in Nigeria at 1% level of significance, while ROE
impacts positively but insignificantly on the CSR of listed DMBs in Nigeria. It is therefore
recommended amongst others that management of the listed Deposit Money Banks that
are interested in corporate social responsibility should make judicious use of the Banks
return on equity as this may in turn improve the performance and encourage the banks to
embark on CSR. As for the return on assets, it should not be an issue to be considered when
deciding on investment in CSR.