Impact Of Corporate Social Responsibility On The Value Of Firms In Nigeria (A Study Of Selected Firms In Nigeria)

ABSTRACT

The rising cost of running enterprises in Nigeria as well as divergent views in the literature regarding the type of relationship that exists between CSR and firms value have necessitated this research work that examined the impact of CSR on firms value in the banking industry in Nigeria. Annual reports formed the secondary source of data collection where the CSR cost and total equity (firm's value) for the period of 2006-2015 was used for the computational experiment. The data collected for this study were analyzed using ordinary least square regression analysis. The results of the regression analysis showed the impact of CSR on the firms value in Nigeria which revealed (β=0.8908, p≤05). This means that for every unit change in the CSR will lead to 89 percent increase in the firms value. The study concluded that there is positive relationship between bank CSR activities and firm's value. It was recommended that banks need to demonstrate high level of commitment to CSR based on stakeholder theory in order to enhance their profitability in the long run.