IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE OF ZENITH BANK NIG. PLC

ABSTRACT This study examined relationship between Corporate Social Responsibility (CSR) activities and the financial performance of commercial banks in Nigeria, with a focus on Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS). Through an ex-post facto research design, the study examines past data from published annual reports of ten selected prominent banks in Nigeria, covering the period from 2014 to 2023. Employing panel data analysis techniques, the research uncovers significant variability in financial outcomes and CSR efforts among the banks. Furthermore, the Hausman test results consistently favor the fixed effects model, emphasizing the substantial influence of individual bank attributes on observed relationships. The panel regression analysis focusing on EPS demonstrates that increased investments in community development positively impact EPS, while higher corporate donations and charity expenditures are associated with a decrease in EPS. The results underscore the importance of strategic CSR initiatives in enhancing both financial performance and social impact within the Nigerian banking sector, providing valuable insights for policymakers, regulators, and banking institutions aiming to foster sustainable development.