Corporate Social Responsibility Disclosure and Firm Financial Performance

Abstract

This study examines corporate social responsibility disclosure and firm financial performance. The secondary source of data collection was adopted in the study. The purposive sampling technique was used to select a sample size of twelve (12) listed deposit money banks in Nigeria. Ordinary Least Square regression analysis was used in this study. The findings revealed that employee relation disclosure has no significant effect on the firm performance of listed deposit- taking banks in Nigeria and that local community relation disclosure has a substantial impact on the strong financial performance of listed deposit-taking banks in Nigeria. The study concluded that corporate social responsibility activities have become the optimum solution to integrate moral principles in the banking world, which suggests that it is an increasingly important issue and has seen greater integration in the business world. The study recommended, among others, that more funds should be allocated for social donations and giftings to further drive the relevance and rationale of corporate social responsibility and that while corporate social responsibility is extended to the community at large, employees of banks should not be left behind as deliberate incentives should be provided periodically.