Research Article

DO CORPORATE GOVERNANCE MECHANISMS INFLUENCES CORPORATE SOCIAL RESPONSIBILITY PRACTICE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abdulazeez Abubakar1*, Shehu Usman Hassan2, Aliyu Saidu1
1 Department of Accounting, Ahmadu Bello University, Zaria, Nigeria
2 Department of Accounting, Kaduna State University (KASU)-Nigeria
* Corresponding author: abdulazeezasadauki@gmail.com
Published: Jun, 2015
Pages: 33-54
Views: 17
Downloads: 18

Abstract

Corporate social responsibility is no doubt a welcome idea especially in the face of rising competition in business environment that has created several challenges for businesses due to the recent public awareness regarding its economic importance globally. Majority of prior CSR researches have neglected the role played by corporate governance mechanisms in ascertaining the level of firm’s CSR investment and practice. Therefore; this study investigates the influence of corporate governance mechanisms on corporate social responsibility practice in the listed deposit money banks (DMBs) in Nigeria. In trying to achieve this, panel data were extracted and used from the Annual Reports and Accounts of thirteen (13) sampled banks out of sixteen (16) listed deposit money banks in the Nigerian Stock Exchange for a period of eight (9) years (2006-2014) which was arrived at using convenience sampling technique. Correlation research design was adopted and used in collecting data, while the Generalized Least Squares (GLS) multiple regression was used as technique of data analysis. The study found that firm Board Size has positive but insignificant influence on corporate social responsibility practice of listed deposit money banks in Nigeria. The study also found that Board Independence, Gender Diversity, Foreign Expertise, Institutional Ownership and Size all have significant positive influence on the corporate social responsibility of listed deposit money banks in Nigeria. In view of the results found, the study therefore recommended that the management of listed deposit money banks in Nigeria should maintain the proportions of at least thirty to seventy of board independence and if possible ensure gender equilibrium while determining female directors representation on the board, consider the economic relevance of foreign expertise, increase the size of their institutional ownership, expand their size by acquiring more assets, and ensure strictly comply with the corporate governance codes in relation to board of directors’ appointments, representation, gender equality, foreign expertise, institutional ownership and overall community involvement in their decision making process.

Keywords

CSR Corporate Governance Mechanisms Board Size board Independence Gender Diversity Foreign Expertise Institutional Ownership Size and DMBs in Nigeria.

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How to Cite

Abubakar, A., Hassan, S. U., & Saidu, A. (2015). DO CORPORATE GOVERNANCE MECHANISMS INFLUENCES CORPORATE SOCIAL RESPONSIBILITY PRACTICE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Nigerian Journal of Accounting Research, 11(1), 33-54.

A. Abubakar, S. U. Hassan, and A. Saidu, "DO CORPORATE GOVERNANCE MECHANISMS INFLUENCES CORPORATE SOCIAL RESPONSIBILITY PRACTICE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA," Nigerian Journal of Accounting Research, vol. 11, no. 1, pp. 33-54, June 2015.

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