Impact of Corporate Social Responsibility on the Profitability of Multinational Companies in Nigeria

Adedayo Temitayo Faustina

Impact of Corporate Social Responsibility on the Profitability of Multinational Companies in Nigeria

Adedayo Temitayo Faustina * §

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Ekiti state University

Impact of Corporate Social Responsibility on the Profitability of Multinational Companies in Nigeria

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Abstract

This study investigated the impact of corporate social responsibility (CSR) on profitability of multinational companies in Nigeria. Specifically the study analyzed the relationship and impact of corporate social responsibility spending on profit after tax, as well as the causal relationship between corporate social spending and profit after tax. Five multinational companies were randomly selected in the study and data were collated from their respective financial reports for a period of five years covering 2010 to 2014. The study employed techniques including correlation analysis, pooled ols estimation, fixed effect and random effect estimations, granger causality estimation and post estimation test such as restricted f-test and Hausman test. Result revealed that there is weak negative correlation between corporate social spending and profit after tax (-0.0648). Corporate social spending exerts negative insignificant impact on profit after tax (β=-27.0860, P=0.704), while there is only evidence for unidirectional causal relationship running from corporate social spending to profit after tax for Oando plc, among all the selected multinational companies (f-stat=208.868, P=0.0440).

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Adedayo Temitayo Faustina. 2017. "Impact of Corporate Social Responsibility on the Profitability of Multinational Companies in Nigeria". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 17 (GJMBR Volume 17 Issue D3).

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GJMBR Volume 17 Issue D3

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-D Classification JEL Code: M49

Submission ReceivedDecember 14, 2016
Peer Review Double Blind
Handling Editor
Accepted January 4, 2017
Published January 15, 2017

Version of record

v1.2

Issue date

December 1, 2017

Language

English

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Article Matrices

Total Score: 154

Country: Nigeria

Subject: Global Journal of Management and Business Research

Authors: Dr. Gideon.T. Akinleye, Adedayo Temitayo Faustina (PhD/Dr. count: 1)

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Publish Date: 2017 01, Sun

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