Effect Of Corporate Social Responsibility On Profitability Of Listed Deposit Money Banks In Nigeria

1.5    Research Hypotheses
In order to achieve the specific objectives of this research, the following research hypotheses have been formulated to be tested in the study:
H1: Corporate social responsibility has no significant effect on the net profit margin of listed deposit money banks in Nigeria.
H2: Corporate social responsibility has no significant effect on the return on total assets of listed deposit money banks in Nigeria.
H3: Corporate social responsibility has no significant effect on the return on equity of listed deposit money banks in Nigeria.
1.6    Scope of the Study
The study focuses on the nexus between corporate social responsibility and profitability of listed deposit money banks in Nigeria. It covers a period of ten years (2006-2015) for the 15 listed deposit money banks in Nigeria. The period of investigation is significant in many respects: first, the period witnesses the global financial crisis of 2007/2008 and therefore it will be interesting to investigate whether the crisis affected corporate social responsibility activities of listed deposit money banks in Nigeria; second, since the 2015 financial data of the banks are published, 2006- 2015 represent the most recent data in respect of the financial performance of listed deposit money banks in Nigeria.
1.7    Significance of the Study
The study is expected to make contributions to knowledge in a number of ways. The outcome of this research will provide information about CSR in relation to corporate institutions especially the listed deposit money banks in Nigeria. It is also expected that the results of this study would produce relevant material for scholarly discourse in management science relating to corporate social responsibility and profitability. Another benefit is that in a truly global economy, deposit money banks in Nigeria would be more responsible and become citizens. Banks would more easily and willingly respond to the social needs of the societies where they operate.
The findings generated in this study are useful in testing the existing theories under extreme conditions not present in developed economies where most of the prior studies were carried out. Current and potential investors are supplied with information to help them make good investment decisions. The findings and conclusion may enable the regulators to know the nature of demand placed on deposit money banks in Nigeria and ways banks have responded to them.
The work is important to the government, host communities and non-governmental organizations involved in development programmes. This study fills literature gap by investigating the effects of CSR on profitability of deposit money banks. The results provide useful evidence to other emerging sectors such as insurance, which is closely related to deposit money banking sector.