Also, Uadiale and Fagbemi (2012) use quantitative research method to examine the relationship between corporate social responsibility and profitability. The study obtained data on variables which were believed to have relationship with CSR and profitability. These variables include net profit margin, return on earnings, return on asset, community performance, employee relations and environmental management system. The result shows that CSR has a positive and significant relationship with the profitability measures. Abiodun (2012) examines the relationship between corporate social responsibility and firms' profitability in Nigeria with the use of secondary data, sourced from ten (10) randomly selected firms' annual report and financial summary between 1999 and 2008. The study uses ordinary least square for the analysis of collected data. Findings from the analysis show that the sample firms invested less than ten percent of their annual profit to social responsibility. The co-efficient of determination of the result shows that the explanatory variable account for changes or variations in selected firms performance (net profit margin, profit after tax) are caused by changes in corporate social responsibility (CSR) in Nigeria.
In a study entitled, impact of corporate social responsibility on the profitability of Nigerian banks, Amole, Adebiyi and Awolaja (2012) use ordinary least square (OLS) regression model in testing the relationship between CSR and profitability. The study uses data on corporate social responsibility expenditure and net profit margin for the period of 2001-2010. It adopts model on the causal relationship between CSR and firms profitability. The results of the regression analysis reveal that there is a positive relationship between CSR and profitability. The adjusted R2 was 0.893, which shows that CSR accounted for 89.3% of the variation in the profitability of the bank.
2.4.2 Corporate Social Responsibility and Return on Assets and Equity Uadiale and Fagbemi (2012) examine the impact of corporate social responsibility activities on financial performance measured with Return on Equity (ROE) and Return on Assets (ROA). The results show that CSR has a positive and significant relationship with the financial performance measures. These results reinforce the accumulating body of empirical support for the positive impact of CSR on financial performance. Uwaloma and Egbide (2012) use sample of 41 listed companies in Nigerian stock exchange for the period of 2008. Multiple regression analysis was employed to analyze the data. The study reveals that there is a significant negative relationship between firm‘s financial leverage and the level of corporate social responsibility disclosures.
Adeboye and Olawale (2012) use a set of purposive sample of 200 executives and employees in banks using student t-test to test the difference between financial performance and ethical standard of doing business. The result of the study shows that there is no significant difference between financial performance and ethical standard of doing business. Adeyanju (2012) uses data of 40 limited liabilities companies quoted in Nigerian stock exchange. Data collected were analyzed using correlation regression and Analysis of variance (ANOVA). The result of the study reveals that companies examined contributed infinitesimal amount of their gross earnings to social responsibility. Bessong and Tapang (2012) examine the influence of social responsibility cost on the profitability of Nigerian banks. The study uses exploratory research design and data were collected from five Nigerian banks through secondary sources and analyzed using the Ordinary Least Square (OLS) method. The study reveals that there is a negative influence between social and pollution cost on profitability.
Abdulrahman (2013) examines the influence of corporate social responsibility on profit after tax of some selected deposit money banks in Nigeria. The study uses secondary source of data from annual reports of some selected banks, and through fact books of Nigerian Stock Exchange (NSE) for the period of the study (2006-2010) by means of content analysis. The study uses regression and correlational analysis in interpreting the result of the formulated hypothesis. The result shows that there is weak positive relationship between CSR and PAT.
Odetayo, Adeyemi and Sajuyigbe (2014) empirically investigate the nexus between corporate social responsibility and profitability of Nigerian banks. Data were collected from annual reports of sampled six banks, for the period of 10 years (2003–2012). Simple regression analysis was employed as a statistical technique to analyze data collected using STATA 11. The regression results reveal that there is a significant relationship between expenditure on corporate social responsibility and profitability of Nigerian banks.
Also, Folajin, Ibitoye and Dunsin (2014) investigate the impact of corporate social responsibility on bank profitability with particular reference to United Bank for Africa (UBA) Plc. The study uses annual reports of United Bank for Africa (UBA) Plc. Data used include corporate social responsibility expenditure and profit after tax for the period of 2006-2012. The data was used to construct ordinary least square (OLS) regression model, which was analyzed using SPSS. Result shows that corporate social responsibility spending has short term inverse effect on Net Profit but in the long run it will provide better returns.
Maisaje (2015) examines the impact of corporate social responsibility on the financial performance of listed deposit money banks in Nigeria. The study uses panel data from listed deposit money banks over a period of 10 years covering 2005 – 2014. Two measures of financial performance were used: return on asset and net profit margin and three measures of corporate social responsibility were used: community CSR, human resource management and charitable contributions. The study finds positive relationship between CSR and financial performance. While the two measures of financial performance adopted by the study are consistent with extant literature, the three measures of CSR adopted by the study call for further investigation of literature that support them.
