Corproate Social Responsibility and Profitability of Selected Deposit MOney Banks in Nigeria: A Panel Analysis
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Date
2014-06-25
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Journal ISSN
Volume Title
Publisher
Ilorin Journal of Management Sciences
Abstract
Spending without knowing the future returns generated for an organization could cumulatively put an organization into financial problems in the future. To this end, Corporate Social Responsibility (CSR) expenditure should rather improve the profitability position of an organization and not otherwise. This study examines the impact of corporate social responsibility expenditure on the profitability of Nigerian Deposit Money banks. Secondary data sourced from the banks' financial statements between 2007 and 2011 were employed in the analysis. Purposive sampling technique was adopted to select ten out of the existing twenty one Deposit Money Banks currently operating in Nigeria. Correlation and Panel data regression model was adopted to provide answer to the research questions raised. The results show that expenditure on CSR has no significant impact on banks' profitability, implying that care should be exercised by Nigerian banks on the amount committed to CSR so as not to jeopardize their profits and wealth maximization objectives.