The effects of corporate social responsibility activity disclosure on corporate profitability: Empirical evidence from Nigerian commercial banks

Abstract

The study examined the effects of corporate social responsibility activity(CSR) disclosure on bank profitability in Nigeria. Data were sourced from annual report and accounts of twelve sampled commercial banks in Nigeria for the year 2012 only. Variables such as CSR disclosure scores, banks' size and owners' equity serve as independent variables and banks' profitability proxy by returns on equity(ROE) as dependent variable were incorporated into the model. The data were analyzed using multiple regression analysis of Ordinary Least Square(OLS). The results showed that banks' size and CSR disclosure score have a positive relationship with bank profitability while owners 'equity has negative association with bank profitability. It was therefore concluded that banks should increase their level of CSR disclosure as itexhibits greater concern to improve on good corporate image and as a way of showing a greater commitment to impact and improve people's lives which in return capable of improving banks' patronage and profitability. Keywords: Corporate social responsibility, bank's size, profitability, regression analysis.