Effect of corporate social responsibility on enterprise value of deposit money bank in Nigeria

Dauda Ibrahim Adagye and Dauda Musa Ibrahim
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Dauda Ibrahim Adagye: Department of Accountancy, Nasarawa State Polytechnic, Lafia, Nasarawa State Nigeria
Dauda Musa Ibrahim: Department of Accountancy, Nasarawa State Polytechnic, Lafia, Nasarawa State Nigeria

Journal of Administrative and Business Studies, 2019, vol. 5, issue 1, 37-46

Abstract: This study sought to determine the effect of Corporate Social Responsibility (CSR) (i.e., Environmental Expenditure (EE), Community Expenditure (CE), and Employee Expenditure (EmE) on Enterprise Value (EV), with particular reference to quoted deposit money banks in Nigeria. The study adopted the correlational design, and a population of 21 banks was considered. Out of this population, 15 banks were sampled through the purposive method. Panel regression was used to analyze the data, which were collected from annual financial reports of the sampled banks. The results of the analysis indicated that, overall, CSR’s effect on enterprise value is statistically significant; meaning that corporate social responsibility expenditure has significant effect or association with enterprise value (i.e., EV). The study recommended that banks in Nigeria should maintain, and possibly increase their CSR expenditure rather than looking to reduce or even eliminate it as they seek to cut down on their business cost. This is because of the likely negative effect it might have on their business in the long run as documented by the outcome of this study.

Keywords: Social responsibility; Corporate value; Deposit money banks (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:apb:jabsss:2019:p:37-46

DOI: 10.20474/jabs-5.1.4

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