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

4.4.3    Effect of CSR on ROE
The effect of corporate social responsibility on profitability measured by return on equity (ROE) is shown Table 13 as follows:

R2 = 0.908    Adjusted R2 = 0.906
F-Statistics = 445.340    Prob > F = 0.000 Source: IBM SPSS 22 Outputs based on study data
As shown in Table 13, results on the effect of CSR on ROE show that the coefficient of CSR was 0.009 hence CSR had a positive effect on ROE. It also suggests that for every unit increase in CSR, profitability increases by 0.009. The p value was 0.000 which is less than 5% level of significance, indicates that CSR had a significant positive effect on ROE. In addition, firm size has a positive coefficient (0.001) and shows significant effect on profitability (p value = 0.000). Although, interest rate has a positive effect (0.017), the effect is not statistically significant (p value = 0.106). Also, the adjusted R2 is 0.906 meaning that about 91 per cent of the variations in profitability are explained by the model. The prob > F is 0.000, which is a sign of goodness of fit of the model.
4.5    Testing of Hypotheses
With the results from Tables 11, 12 and 13, the three null hypotheses, which state that corporate social responsibility has no significant effect on net profit margin, return on total assets and return on equity are rejected. The rejection of the hypotheses is based on the fact that the p- values in the three cases: NPM (0.000), ROA (0.000) and ROE (0.000) are less than 0.05 (level of significance), which is the level for accepting or rejecting the statement of hypothesis.