Firm Attributes, Board Characteristics And Corporate Social Responsibility Of Listed Deposit Money Banks In Nigeria

1.3 Objective of the Study

The major objective of this research is to examine the impact of firm attributes and board characteristics on corporate social responsibility of listed Deposit Money Banks in Nigeria. The specific objectives are to:

(i) evaluate the impact of firm profitability on corporate social responsibility of listed Deposit Money Banks in Nigeria.

(ii) examine the influence of firm size on corporate social responsibility of listed Deposit Money Banks in Nigeria.

(iii) ascertain the effect of liquidity on corporate social responsibility of listed Deposit Money Banks in Nigeria.

(iv) determine the influence of independent directors on corporate social responsibility of listed Deposit Money Banks in Nigeria.

(v) establish the impact of female directors on corporate social responsibility of listed Deposit Money Banks in Nigeria.

1.4 Research Hypotheses

In line with the stated objectives, the following null hypotheses were formulated and tested in the study:

H01: Firm profitability has no significant impact on corporate social responsibility of listed Deposit Money Banks in Nigeria.

H02: Firm size has no significant effect on corporate social responsibility of listed Deposit Money Banks in Nigeria.

H03: Firm liquidity has no significant effect on corporate social responsibility of listed Deposit Money Banks in Nigeria.

H04: Independent directors of a firm have no significant influence on corporate social responsibility of listed Deposit Money Banks in Nigeria.

H05: Female directors have no significant impact on corporate social responsibility of listed Deposit Money Banks in Nigeria.

1.5 Scope of the Study

This study limited itself to only those Banks that were listed on the Nigerian Stock Exchange (NSE) as at 31st December, 2013. The study centered on evaluating the impact of Firm Profitability, Firm Size, Firm Liquidity, Independent Directors and Female Directors of a firm on CSR of listed Deposit Money Banks in Nigeria. The study covered the period of eight years 2006

- 2013. Eight years, is considered appropriate based on the fact that 2006 was the beginning of post consolidation period during which Nigerian banking sector encountered series of reforms such as recapitalization exercise of minimum deposit of N25b imposed by the Central Bank of Nigeria.

1.6 Significance of the Study

Firm attributes, board characteristics and CSR have been frequently studied using data from different sectors and different countries of the world. However, few of these studies combined adequate variables to represent firm attributes and board characteristics in relation to CSR. There were extant literatures that studied the impact of firm attributes and board characteristics (Firm Profitability, Firm Size, Firm Liquidity, Independent Directors and Female Directors of a Firm) on CSR. Hence, this study will serve as an added effort to fill that literature gap. In addition, the significance of this research lies in the following:

Firstly, it is hoped that this study would serve as a valuable planning mechanism for bank managers and investors. It will assist managers of Listed Deposit Money Banks in Nigeria by bringing to light some of the attributes/characteristics/factors that positively or negatively influence their banks? involvement in CSR activities thereby, apply them appropriately in their corporate strategic plans and decision making.

Secondly, the result could also provide basic understanding into the existing difficulties of CSR practice with some board characteristics and firm attributes in relation to banking industry. The result is expected to have an important policy implication for Nigerian Stock Exchange (NSE), Central Bank of Nigeria (CBN) and other stakeholders in banking regulation to regulate their potential pressure concerning the needs for increase corporate involvement or participation on CSR activities as well as social information disclosure on the annual reports of Deposit Money Banks in Nigeria.

Finally, in line with the findings of previous studies in analyzing and describing the role of firm attributes and board characteristics of Listed Deposit Money Banks in Nigeria as factors influencing CSR investment, the findings of this research work would add to the growing body of knowledge as the study was tailored towards filling the identified literature gaps and building its facts based on the prediction and explanation of relevant theories adopted.