IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 9 NO. 4 2023
DOI: https://doi.org/10.56201/ijbfr.v9.no4.2023.pg78.96

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Moderating Effect of Managerial Efficiency on the Association between Corporate Social Responsibility and Market Value of Nigerian Banks

Safiya Auwal Suleiman , Ahmadu Abubakar, PhD & Nura Shitu Abdullahi

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Abstract

This research paper investigates the moderating effect of managerial efficiency (ME) on the association between corporate social responsibility (CSR) and market value of Nigerian banks, incorporating four control variables. The paper utilized a panel data of eight Nigerian listed banks over the study period 2010- 2021. Static panel techniques such as Pooled Ordinary Least Squares (POLS) and the Fixed Effects Model (FEM) in conjunction with the Weighted Least Squares (WLS) were considered in the model estimation However, the Restricted F-test rated the POLS over the FEM, which was later dropped for WLS due to heteroskedasticity problem. The main findings reveal that CSR has a significant positive effect on the market value; ME has a positive and significant effect on the market value and ME significantly and negatively moderates the link that binds CSR and the market value. The research concludes that the role of ME matters when it comes to understanding the CSR and the market value nexus. Expenditure on CSR activities should be multiplied by banks, as doing so will create good image, loyalty and reputations for the banks, and consequently improve their market value.

keywords:

Managerial efficiency, corporate social responsibility, market value, Nigerian banks

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References:

Abdullahi, A. I., & Okoh, I. I. (2017). The effect of profitability on social donations of listed
Nigerian conglomerates. Nigerian Journal of Management Technology and
Development, 8(2), 420- 437.

Abubakar, A. (2018). Corporate social responsibility and financial performance of quoted
deposit money banks in Nigeria. Kebbi Journal of Economics and Social Sciences, 1(1),
149- 157.
Abubakar, A. (2020). Degree of financial and operating leverages and financial performance
of listed oil and gas companies in Nigeria. Proceedings of 8 th international seminar of
entrepreneurship and business (ISEB 2020), 523- 534.

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