ABSTRACT

The study investigated effect of social responsibility costs accounting on financial performance of listed commercial banks in Nigeria from 2007 to 2018 and adopted exposit facto research design. Data were data from annual reports of three selected listed commercial banks based on nonprobability sampling technique. The variables employed are profit after tax, return on assets, and return on equity and total donations. Profit after tax, return on assets and return on equity were employed as financial performance proxies and served as separate dependent variables. It hypothesized that social responsibility cost accounting has no significant effect on profit after tax return on equity and return on assets. It engaged panel unit root test and ascertained that all the variables are stationary and integrated at level and adopted the panel data regression analysis to evaluate the relationship of the variables. It gave evidence that social responsibility cost accounting has positive significant relationship with all the financial performance proxies engaged in the study. It also established that social responsibility cost accounting has significant effect on profit after tax, return on equity and return on assets of the sampled listed commercial banks in Nigeria. The study therefore concludes that social responsibility cost accounting has significant effect on financial performance of listed commercial banks in Nigeria. It recommended that management of banks should liaise with relevant stakeholders to undertake social responsibility activities in consideration of long term operational benefit to enhance profit and engage shareholders when they want to carry out social activities.