This study is an empirical analysis of the determinants of corporate social responsibility disclosure in listed deposit money banks in Nigeria for the period of 2006-2016. The listed deposit money banks are fifteen (15) as at 31st December, 2016, out of which eleven (11) banks was selected as sampling of the study with the aid of filters. Specifically, the study examined the effect of firm size, liquidity, return on investment, gearing ratio, dividend and firm growth of the listed deposit money banks. The study employed correlation and data were analyzed with the aid of multiple regression technique. Using 121 firm year panel observations, OLS regression model was used as no heteroscedasticity was observed. Quantitative approach was adopted in the study and the study aligns itself to positivist paradigm. The study reveals that firm size and firm growth positively and significantly influence the corporate social responsibility disclosure of listed deposit money banks in Nigeria at 5% and 10% levels of significance, respectively. However, liquidity, return on investment, gearing ratio and dividend positively but insignificantly impact on corporate social responsibility disclosure. While dividend negatively and insignificantly affects the corporate social responsibility disclosure of listed deposit money banks in Nigeria. The study concludes that firm size and growth are influential in explaining the corporate social responsibility disclosure of listed deposit money banks in Nigeria. Therefore, the study recommends amongst others that the management of listed deposit money banks should maintain quality assets that are durable. This is in view of the potential for the organizations that have such assets to disclose more of its corporate social responsibility activities. The management of the listed deposit money banks in Nigeria should improve upon the banks’ growth by extending into other profitable opportunities as the higher their growth rate the more they will be willing to disclose more of its corporate social responsibility. However, as for the liquidity, return on investment, gearing ratio, dividend they should be improved upon as they also have positive influence on the corporate social responsibility disclosure of listed deposit money banks in Nigeria.




Title page—————————————————————————————————————–i
Declaration —————————————————————————————————————ii
Certification ————————————————————————————————————-iii
Dedication————————————————————————————————————— iv
Acknowledgements—————————————————————————————————– v
Table of contents —————————————————————————————————— vii
List of tables————————————————————————————————————- x
Abstract—————————————————————————————————————— xi
1.1 Background to the Study————————————————————————— 1
1.2 Statement of the Research Problem————————————————————— 5
1.3 Research Questions——————————————————————————— 9
1.4 Objective of the Study—————————————————————————— 9
1.5 Hypotheses of the Study————————————————————————- 10
1.6 Scope of the Study———————————————————————————-11
1.7 Significance of the Study————————————————————————- 11
2.1 Introduction—————————————————————————————– 13
2.2 Concept of Corporate Social Reasonability—————————————————– 13
2.3 Measurement of Corporate Social Responsibility———————————————- 15
2.4 Categories of Corporate Social Responsibility————————————————- 16
2.5 Approaches to Corporate Social Responsibility———————————————– 20
2.6 Corporate Social Responsibility and Firm Performance————————————- 24
2.7 Review of Related Studies———————————————————————– 26
2.8 Theoretical Framework————————————————————————– 43
3.1 Introduction—————————————————————————————- 46
3.2 Research Design———————————————————————————– 46
3.3 Population and Sample of the Study———————————————————— 46
3.4 Source and Method of Data Collection——————————————————— 47
3.5 Technique of Data Analysis———————————————————————- 48
3.6 Variables Measurement————————————————————————— 49
3.7 Model Specification——————————————————————————–50
4.1 Introduction—————————————————————————————– 52
4.2 Descriptive Statistics——————————————————————————- 52
4.3 Correlation Matrix———————————————————————————- 54
4.4 Robustness Test of Dependent and Independent Variables———————————– 56
4.5 Presentation and Interpretation of Regression Result—————————————– 58
4.6 Hypotheses Testing——————————————————————————– 59
4.7 Discussion of Result——————————————————————————- 62
5.1 Summary——————————————————————————————- 68
5.2 Conclusion—————————————————————————————– 69
5.3 Recommendations——————————————————————————– 71
5.4 Limitations of the Study————————————————————————- 73
5.5 Suggestions for Further Studies—————————————————————- 73
References————————————————————————————————- 75
Appendices (s)…………………………………………………………………………………………………………………….. 89
Table 3.1 Items reported on corporate social responsibility —————————————— 48 Table 3.2 Variable Measurement and Definition—————————————————— 50
Table 4.1 Descriptive Statistics——————————————————————————— 52
Table 4.2 Correlation Matrix———————————————————————————– 54
Table 4.3 Regression Result————————————————————————————-




INTRODUCTION 1.1 Background to the study In developed economies the concept of business has focused not only on profit making activities but also social welfare activities where businesses are not only responsible to its shareholders but also to all of its stakeholders. Empirical works revealed that there has been a growing global public awareness of the role of corporations in society. Many companies which have been credited with contributing to economic and technology progress have been criticized for creating social problems. Issues such as pollution, waste, resources depletion, product quality and safety, the rights and status of workers and the power of large corporations have become the focus of increasing attention and concern. (Islam, 2012). Corporate Social Responsibility (CSR) is the process of communicating the social and environmental effects of organizations‟ economic actions to particular interest groups within society and to society at large. As such, it involves extending the accountability of organizations (particularly) companies; beyond the traditional role of providing a financial benefit to the owners of capital, particularly shareholders but also to the community. Such extension is predicated upon the assumption that companies do have wider responsibilities than simply to make money for their shareholders (Rizk, Dixon, and Woodhead, 2008).
Similarly, Nigeria Deposit Money Banks (DMBs) despite being profit making and service oriented firms also participate in CSR. Most of the quoted deposit money banks in Nigeria have recently realized that in order for them to survive and continue business as a going
concern, they must adopt a system that bridges the gap between financial performance and the social system within which they operate. In addition, CRS in Nigeria can be traced back to the practices in the oil and gas multinationals. The CSR activities in this sector are majorly centered on the local communities. The companies provide pipe-borne water, hospitals and schools among others. These initiatives are special and not always sustained (Amaeshi, Adi, Ogbechie, and Amao, 2006). The main influencing factors driving the CSR practice in Nigeria have been foreign; multinational companies operating in Nigeria together with foreign governments and international Non Governmental Organizations (NGOs) have been the primary drivers (Helg, 2007). The concept has been a growing field of interest by sociologists, economist and accountants since 70s. The accounting struggle was to ensure that all social costs are adequately identified, measured and disclosed in the corporate periodic financial reports. Stakeholders are challenging firms to account for the level of their involvement in CSR (Tsoutsoura, 2004). CSR issue has therefore maintained its momentum continuously not only in developed economies but also in underdeveloped and developing countries particularly in Nigeria. Because, companies disclose information on CSR as a result of pressure from stakeholders such as customer, communities, investors, employees and creditors also due to the increase of global awareness of the role of companies in the society.
Moreover, many empirical studies have focused on the variation in CSR practice across developed countries (Smith, Adhikari Tondkar 2005; Gray and Bebbington 2007), only a
few have addressed this issue in developing countries (Haniffa and cooker, 2005; 2007; Akintola 2010). This suggests that CSR is more relevant to corporations operating in the developed nations due to community awareness and expectations of society responsible behavior. Also societal awareness and expectations in the developing nations on CSR is less important to the society. Firm size, profitability, liquidity, leverage, dividend and firm growth are the most key considered in determining firm CSR investment, disclosure and practice in previous studies. Firm size is one of the determining factors of CSR disclosure in developed and developing countries. This study extended as far as determining the extent to which firm size contributes to CSR. Firm size measured in different ways by different authors such as turnover, total assets, fixed assets, paid up capital, shareholders equity, capital employed, number of employees and market value of the firm. This study measured firm size as total assets of the firm which is in line with the work of Shehu and Faruk (2013); Abdu Abubakar (2016); and Tazul-Islam(2010). It is expected that large firm would like to practice and disclosure more information on CSR because of economic advantages. Similarly, profitability has been measured by previous researches in so many ways such as net profit to sales, earnings growth, dividend growth, return on assets and return on investment. Here, the study measured profitability on the basis of return on investment in line with Khaled, Mohammed, and Marwa, (2011). There are divergent opinions on whether CSR practice and disclosure has relationship with profitability some results reveal positive, negative while others have mixed results and even absence of relationship between the concerned variables.
There are a reasonable number of literatures on liquidity as one of the determining factors of CSR practice and disclosure in developed and developing economy. Liquidity is seen as vital aspect in the life of a commercial bank and that the level of banks engagement in CSR and other related activities is determined to a greater extent by the banks‟ liquidity position Samad (2004). Firm with large liquidity has advantage to solve its financial matters efficiently and effectively over the one that has lesser or even absence of it. Gearing on the other hand explains the debt component of the capital structure of a firm. Reasons were advanced by several researchers that firm with a high gearing would have little resources to take care of some other objectives. However, firms‟ decision to engage in CSR disclosure may also be influenced by gearing this is because of attracting more investors to invest in their company which give stakeholders alarm that the firm has a good future survival and growth. It is however argued that firms‟ decision to engage in CSR disclosure may also be influenced by dividend paid. Various researchers have advanced several reasons in the literature regarding the association between firm CSR engagement and dividend paid, which is mixed and inconsistent with some cases revealing positive, negative and even absence of relationship. This study go beyond that as not only evaluate the relationship but also examined the influence dividend paid has in driving firms to practice and disclose CSR.
The association between firm growths as one of the expected determinants of CSR disclosure of an organization has been established in different countries with divergent views as to the impact it has on the CSR disclosure of a firm to variations of the
environments, methodologies and the periods in which the studies were conducted. Moreover, notable researches like Waddock and Graves (1997) and Campbell (2007) proposed that, since firms that are less profitable with relatively poor assets size and unable to optimized their liquidity position would have fewer resources to spare for socially responsible activities compare to those firms that are more profitable with large assets size and operate at an appropriate liquidity level. This mean that firm recorded consistent positive growth in many sensitive aspect of its operation will likely to participate more on CSR activities. Banking industry play a significant role towards the development of nation‟s economy, their activities covers many angle of life and is expected to spend more toward championing Corporate Social Responsibility. The increase pressure and awareness from society on CSR disclosure has been the challenged facing almost every sector globally. However, Deposit Money Banks in Nigeria being the most important sector in the economy are not left out to the challenge. 1.2 Statement of the problem Following the series of banking reforms undergone during the Soludo, Sanusi Lamido Sanusi and the current reforms going on by Godwin Emefiele like introduction of cashless policy, reduction of monetary policy rate, exchange rate stability and introduction of Treasury Single Account (TSA), Nigerian deposit money banks (DMBs) have always been at receiving end of these reforms, in terms of improving the quality of service delivery to the customers rather than the interest of the bank.
However, DMBs of Nigeria have been facing challenge of liquidity since the implementation of TSA policy in 2015. This may significantly affect the level of CSR in DMBs of Nigeria, but there might be greater demand of DMBs to disclose more CSR activities to meet up their demand. This therefore triggers the need for evaluating empirically the factors influencing CRS disclosure of DMBs in Nigeria. Thus, do the factors that have been previously documented to influence CSR disclosure in developed and developing economics also influence CSR disclosure in Nigeria. The current study seeks to provide answer. In addition, there are reasonable literature that attempt to address the debate surrounding CSR issue and its determining factors. Firm size, Profitability, Liquidity, Leverage, Dividend and Firm growth are the key factors considered in determining Corporate Social Responsibility (CSR) disclosure and practice in many previous studies which revealed mixed results Abubakar Abdu (2016). Some studies such as Lin chih, Hsuan chih and Yin chen (2010), Akintola (2010), Khaled, Mohamed and Marwa (2011) and Faruk and Shehu (2013) have produced evidence in support of a positive impact of factors influencing CSR activities while other works such as John and Shyan (2010) and Abu Sufian (2012) reported no significant impact at all. However, the inconsistency to identify which of the variables debated is most influential in predicting and determining the CSR disclosure, Firm Size is among the variables in determining the CSR disclosure of firms ( Rahman and Widyasari 2008 and Ebiringa et al. 2013) but the question remains as whether Firm Size influence the CSR of listed DMBs in Nigeria more than the other variables.
Furthermore with respect to Profitability, contradicting views have been put forward by scholars (Abu-sufyan 2012, Hussainey, Elsayed and Abdulrazik 2011, Garmerschlag and Verbeenteen 2011 and Ebiringa et al. 2013) some view it as significant determinant factor of CSR disclosure of firms while others view it as not significant factor. The expectation of this study is that Return Of Investment (ROI) would play a vital role in estimating the CSR of listed DMBs in Nigeria. The adequacy of liquidity for all successful functioning business firms is crucial. Liquidity shortage no matter how small can cause great damage to a financial institution‟s operations and customer relationship in particular. Moreover, different views have been expressed by various studies (Maleya and Willy 2013 and Andrew and Osuji 2013) that Liquidity is the most paramount in determinig CSR of firms. The debate remains whether firm with enough liquidity can participate fully on CSR disclosure of listed DMBs in Nigeria.
Divergent views have been expressed with respect to gearing, some scholars indicate that they are not important in predicting CSR of firms while others are of the opinion that they are better determinant of CSR of firms than other variables (Faris et al. 2012, Shehu and Farouk 2013 and Abdu 2016). Therefore , this study is set to find out whether gearing is one of the drivers of CSR disclosure of listed DMBs in Nigeria. Several studies found in literature attempted to address the numerous contradictions sounding the impact of dividend on CSR disclosure, yet there is lots of inconsistency of the results. Some studies such as Shehu and Farouk (2013), and Joonil and Yongbok (2015) have produced evidence in support of a positive impact on dividend and CSR, while other works such as that of Faris, et al. (2012) reported no evidence of a significant relationship at all. This study goes beyond to evaluate the relationship of dividend paid and CSR of DMBs in
Nigeria but also examine the influence dividend paid has in driving DMBs to disclosure CSR in Nigeria. Further, among the unresolved issue that deserves attention include the identification of the factor that drives firms into investment in CSR. Prior empirical studies (Shehu and Farouk, 2013 and Fris et al., 2012) established association among firm growth and CSR also they have the opinion that, firm growth is having more advantage over other variables of the study in determining CSR of firms. Therefore this study anticipates that, firm growth would be a vital factor in predicting the CSR disclosure in DMBs in Nigeria. Despite the fact that many researchers have tried to solve these arguments, controversies, and debates surrounding the CSR activities yet investigating the factors influencing the CSR disclosure in Nigeria remains unsolved. However, prior empirical studies that investigated the factors determining the CSR were conducted outside Nigeria (Reverte, 2009; Li and Zhang, 2010; Wang and Song, 2011), and the fact that few studies such as Faruk and Shehu (2013), Akano, Jamiu, Olaniran and Oluwalgbon, (2013), Abdu (2016) among others conducted research in Nigeria on determinants of CSR but neglected the influence of other important factors such as ROI, Firm growth, Gearing and Dividend. Hence, this study will seek to provide answers to these questions and contribute to the existing emprical literatures in this area.
Methodological gaps will be filled in this study because most of the researches conducted in this area either measured CSR based on the total amount invested on CSR (Abdu 2016 and Abdul‟azeez 2016) where as neglected the use of proper measurement or made use of Chi-square techniques (Faris et al. 2012 and Ebiringa et al. 2013) which have deficiency in terms of reflecting time variant and specific characteristic issues. Thus, this study will
employ the use of content analysis on measuring CSR and ordinary least square multiple regression technique to take care of the deficiencies. Therefore, these are the gaps that need to be filled by present research with period gap of the previous researches. 1.3 Research Questions In light of the above, and with a view to filling these different gaps identified in the literature. Thus, this study intends to provide answers to the under listed questions:
i. What effect does firm size has on CSR disclosure of quoted deposit money banks in Nigeria?
ii. How ROI does affects CSR disclosure of quoted deposit money banks in Nigeria?
iii. What effect does liquidity has on CSR disclosure of quoted deposit money banks in Nigeria?
iv. How does gearing affects CSR disclosure of quoted deposit money banks in Nigeria?
v. What is the effect of dividend on CSR disclosure of quoted deposit money banks in Nigeria?
vi. How firm growth affect CSR disclosure of quoted deposit money banks in Nigeria?
1.4 Objectives of the study The major objective of the study is to examine the determinants of CSR disclosure of listed deposit money banks in Nigeria. The specific objectives are to:
i. Evaluate the effect of firm size on CSR disclosure of quoted deposit money banks in Nigeria.
ii. Examine the effect of ROI on CSR disclosure of quoted deposit money banks in Nigeria.
iii. Identify the effect of liquidity on CSR disclosure of quoted deposit money banks in Nigeria.
iv. Ascertain the effect of gearing on CSR disclosure of quoted deposit money banks in Nigeria.
v. Investigate the effect of dividend on CSR disclosure of quoted deposit money banks in Nigeria.
vi. Determine the effect of firm growth on CSR disclosure of quoted deposit money banks in Nigeria.
1.5 Research Hypotheses In line with the stated objectives, the following null hypotheses were formulated to be tested to validate the objectives of the study: HO1 Firm size has no significant effect on CSR disclosure of quoted deposit money banks in Nigeria. HO2 Return on Investment has no significant effect on CSR disclosure of quoted deposit money banks in Nigeria. HO3 Liquidity has no significant effect on CSR disclosure of quoted deposit money banks in Nigeria. HO4 Gearing has no significant effect on CSR disclosure of quoted deposit money banks in Nigeria.
HO5 Dividend has no significant effect on CSR disclosure of quoted deposit money banks in Nigeria.
HO6 Firm growth has no significant effect on CSR disclosure of quoted deposit money banks in Nigeria. 1.6 Scope of the Study The study examined the determinants of CSR disclosure in listed deposit money banks in Nigeria, the banking industry considered base on the fact that it has been among the best industries on moving Nigerian economy and spend more on CSR activities. The sample size is limited to banks listed on the Nigerian stock exchange as at 31st December, 2016. The study covered a period of eleven (11) years from 2006- 2016, eleven years considered appropriate becouse series of reforms that took place in year 2005 ( recapitalization, marger and acquisition). Therefore, 2006 was the beginning of post consolidation period. The dependent variable of the study is CSR and the independent variables of the study are Firm size, ROI, Liquidity, Gearing, Dividend and firm growth. 1.7 Significance of the Study This study encompass contributions to knowledge which are expected to be of benefit to listed deposit money banks in Nigeria, existing body of knowledge within purview of accounting research, accountants in practice, investors, regulatory bodies and agencies and other stakeholders of the listed deposit money banks in Nigeria as the result of the study provided an important guide and awareness to stakeholders of the factors that determine the corporate social responsibility disclosure of the banks to which they have stake.
Although CSR determinants have been frequently studied from different industries and different countries in the world. However, few of these studies combined adequate
variables to represent determinants of CSR disclosure. Hence, this study add effort to fill that literature gap. The findings of the study provide policy implications as they suggest and would also assist the regulators in the areas and call for the regulatory agencies to come up with policies that would encourage firms‟ corporate social responsibility disclosure in order to make the Nigeria listed deposit money banks at par with their contemporaries internationally; also it assist government in bringing policies that will encourage deposit money banks in Nigeria to embark more social activities Further, the findings of the study assist managers on their corporate strategic plans and decision making. In addition, it enables creditors to identify banks that are legitimate enough to group of stakeholders, as well as investors and potential investors to identify banks that fully participate on CSR. It also gave them insights about how to assess the firm performance to take decision as which banks will invest their funds. Also the result of this work would add value to the existing knowledge as it concentrated towards filling identified gaps.



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