The impact of csr on the performance of financial institutions in ghana

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Date
2023
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KNUST
Abstract
The study's primary objective was to evaluate the impact of CSR on the performance of financial institutions in Ghana. The study will focus on achieving the following specific objectives was to examine the effect of CSR spending on Return on Assets (ROA), determine the effect of CSR spending on Return on Equity (ROE), examine the influence of the size of financial institutions on financial performance. The study uses fourteen (14) commercial banks from 2010 to 2021 and uses the hierarchical regression method to accomplish its goals. According to this study, banks with larger CSR budgets are more likely to outperform their smaller counterparts in terms of asset performance. This study clearly shows that CSR spending affect ROA and ROE positively. This study also shows that bank size affects financial performance positively. As a result, the size of the bank has a significant effect on its financial performance (total assets). The study recommended that, managers must direct resources to other elements that have a large impact on performance because CSR expenditure has a good but minor impact on financial success (ROE). According to the researcher, the high risk and high expense involved with CSR are in part to blame for the low impact of CSR investment on financial success. This necessitates rethinking CSR practises in order to lower CSR expenses.
Description
A thesis submitted to the department of accounting and finance college of humanities and social sciences in partial fulfillment of the requirements for the degree of msc. Accounting and finance
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