IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 7 2024
DOI: 10.56201/jafm.v10.no7.2024.pg122.134

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Firm Performance and Corporate Donations in Nigeria: A Covid-19 Pandemic Analysis

Onuigwe Gladys Chiebonam, Prof. S.A. Anichebe & Prof. Mrs. A.N Nwokeji

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Abstract

This study empirically investigated the relationship between firm performance and corporate donations before, during and after covid-19 pandemic period. In order to determine the relationship between firm performance and corporate donations, firm performance was proxy suing return on assets (ROA), return on equity (ROE) and share price (SP) while corporate donations on the other hand was measured using the ratio of donations and total assets. Three hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using panel regression model operated with STATA 14. Ex Post Facto design was adopted and data for the study were obtained from the published annual financial reports of listed deposit money banks on the Nigerian Exchange Group (NGX) spanning from 2012-2022. The results of the study show that there is no difference in the direction of the effect of return on equity on corporate donation which is positive in the pre covid and in the post covid though both coefficients do not appear to be statistically significant. Also, there is also no difference in the direction of the effect of SP on corporate donation which is negative in the pre covid and in the post covid though both coefficients do not appear to be statistically significant 5% while there is a difference in the direction of the effect of ROA on corporate donation which is negative and significant in the pre covid and then positive and also significant in the post covid. The study therefore concludes that return on assets, return on equity and share price does not determine corporate donations of listed deposit money banks in Nigeria. In lieu of the findings of the study, the study recommends that corporate financial performance is a key determinant of corporate donations and the study recommends the need for tax authorities such as the FIRS to implement tax incentives for corporate donations that account for chan

keywords:

Firm Performance; Corporate Donations; Return on Assets, Return on Equity; Share

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