Corporate Social Responsibility on the Profitability of the Nigerian Banking Industry: Evidence from Four Commercial Banks
Abstract
Corporate Social Responsibility is an inseparable part of the modern banking business, and the analysis of its effect on profitability is the area of increasing academic interest. The paper at hand examines the linkage between CSR spending and profitability in the case of Nigerian commercial banks, with the focus on four bank organizations, between 2013 and 2022. Procedures of analysis entail descriptive statistics, correlation, and multiple regression. The findings show that there is a strong variation in CSR expense: The highest spending average of N4,802.63 million was recorded by one of Bank.. Despite a poor negative correlation being established between CSR expenditure and Return on Assets , the regression model shows that there is a significantly positive impact (coefficient = 0.054, p = 0.013). The leverage has a negative impact on profitability, whereas the size of the bank does not have an impact. A strategic alignment of CSR activities and uniform CSR guidelines therefore should be adopted by the study and this should be applied in enhancing both the financial performance and societal results. The information gleaned by this research directs the policymakers and the bank managers on how to achieve long-term profitability by means of CSR.
Keywords
Corporate Social ResponsibilityProfitabilityNigerian Banking IndustryReturn on AssetsRegression Analysis
References
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