CORPORATE SOCIAL RESPONSIBILITY AND FIRM PERFORMANCE
ABSTRACT
The broad objective of this study is to examine the effect of corporate social responsibility and firm performance. The specific objectives are to examine the impact of corporate social responsibility and firm performance, identify the relationship  between executive compensation and firm performance, determine  the relationship between board  independence and firm performance, examine the relationship between firm size and firm performance.
This study made use of population comprising all firms in the financial sector quoted on the Nigerian Stock Exchange. The study employed a convenience sampling technique in selecting its sample. A sample size of 21 was used for this study due to data availability from 2013-2017.
The results of the study showed that corporate social responsibility and board independence showed a positive relationship with firm performance implying that they move in the same direction with firm performance. However, executive compensation and firm size were negatively related to firm performance meaning they move in opposite direction with firm performance.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1    Background of The Study    
1.2    Statement of the Research Problem    
1.3    Objective of the Study    
14    Scope of the Study    
1.5    Significance of the Study    
1.6    Limitations of the Study    
CHAPTER TWO: LITERATURE REVIEW
2.1    Introduction    
2.2    Conceptual Framework     
2.2.1    corporate Social Responsibility on Firm Performance     
2.2.2 Executive compensation and frm perfroamnce      
2.2.3 form size and firme performance     
2.2.4 Board indipendence and firm performance     
2.3 Theoretical froame Work     
CHAPTER THREE: METHODOLOGY
3.1 Introduction    
3.2 Research Design     
3.3 The Population and Sample    
3.4 Source of Data     
3.5 Model Specification  and Data Analysis Method     
3.6 Operationalization of Variables    
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1    Introduction    
4.2    Descriptive statistics    
4.3    Correlation Analysis    
4.4    Regression Analysis      
4.5    Hausman test    
4.6    analysis of diagnostic test    
4.7    Test of Hypothesis     
4.8    Discusion of Finding     
CHAPTER FIVE: SUMMARY, CONLUSION AND RECOMMENDATION
5.1 Introduction    
5.2 Summary of Findings    
5.3 Conclusion     
5.4 Recommendation     
 5.4.1 Policy Recommendation      
5.4.2  Recommendation for further studies      
Bibliography     
CHAPTER ONE
                                                   INTRODUCTION
1.1    Background to the Study
The performance of every firm is vital for its survival and existence. Critical to the success of every firm is its compensation policy as well as the extent of its corporate social responsibility. Corporate social responsibility as a concept stresses the need for effective communication participation by business enterprises(Belal & momin 2013). It asserts that aside profit motive private firms owe the society a duty of social responsibility. Decision makers in firms are obliged to act in ways and take decisions that take into cognizance the relationship between the society and the business enterprise. It therefore becomes imperative for business enterprises to continue to display ethical behaviour, contribute to economic development as well as enhance the life of the workforce and the community in which it operates.
World Business Council for sustainable Development (2014) defines corporate social responsibility as the commitment of business to sustainable economic development working with employees, their families, the local community and society at large to improve their quality of life. Proponents of CSR argued that organisations integrate economic, social and environmental concerns into the business strategies, their management tools and their activities, going beyond compliance and investing more on human, social and environmental capital (Belal & Momin, 2013; Perrini, 2014). However, other scholars argue that organisations have no business with CSR as CSR raises cost thereby creating competitive disadvantage vis-à-vis competitors.
The objective of this study is to examine the impact of corporate social responsibility on firm performance.
1.2    Statement of Research Problem
The concept of corporate social responsibility over the years has been a topical issue in academic discourse. According to Jooh, Niranjan & Roh (2014) current business researches have emphasized the sustainability concept due to the fact that business must meet their corporate social responsibility duties to the society alongside creating value for their shareholders in order to make a sustainable world. The performance of every firm is vital and key to its continued existence. Several factors affect the performances of a firm amongst which are executive compensation and corporate social responsibility. Several scholars ( mutuku ,2015, jooh 2010 ,osisioma Nzewi and pual 2015 etc.) have argued on the effect of CSR on performance of firms. They argue that firms who engage in CSR are seen socially responsible by the society and this increases their legitimacy, reputation as well as patronage leading to a positive spillover effect on performance. Jooh et al. (2010) further argued that engaging beyond compliance is ethically desirable even if it takes away resources from firms immediate needs. However, Hull and McShane (2008) argue that there are enormous costs involved in engaging in social responsibility which may affect the performance of the organisation.
Numerous researches have been carried out on the impact of CSR on firm performance with conflicting findings (Fauzi, 2013; Cheriuyot, 2016; Obusubiri, 2013; Margolis and Walsh, 2010; Osisioma, Nzewi & Paul, 2015; Mutuku, 2015).
Consequently, drawing from the inconclusiveness of this area of academic discourse as well as paucity of literature, the following research questions was asked in this study
What is the impact of corporate social responsibility and firm performance
What is the relationship executive compensation and firm performance
What is the relationship between  board independence  and firm performance
What is the relationship between  firm size and firm performance
1.3    Objectives of the study
The broad objective of this study is to examine the effect of corporate social responsibility and firm performance. The specific objectives are to:
examine the impact of corporate social responsibility and firm performance
        Identify the relationship  between executive compensation and firm performance
       Determine  the relationship between board  independence and firm performance
    Examine the relationship between firm size and firm performance
Research Hypotheses
The following hypothesis stated in null form was tested in this study.
There is no relationship between corporate social responsibility and firm performance
There is no relationship between executive compensation and firm performance
There is no relationship between board independence and firm performance
There is no relationship between firm size and firm performance
1.4.    Scope of the study
This study examines corporate social responsibility and firm performance. In terms of geography, the study was limited to Nigerian firms quoted on the Nigerian Stock Exchange. The study time frame was for a period of five years (2013-2017). The period was chosen as a result of availability of data.
1.5    Significance of the study
Corporate social responsibility and executive compensation policy are very vital to organisational success.  The performance of any firm to a large extent rest on the effectiveness of reward system as well as its CSR. The justification for this study stems from the fact that the study was able to examine the joint effect of corporate social responsibility on firm performance This study will prove very useful to policy makers as well as accounting practitioners as it will make them better informed on the effectiveness of their CSR as well as what drives firms performance.
Another significance of this study is that it contributes to existing body of knowledge on the subject matter and also would assist prospective researchers who would want to conduct further research in this area by providing a basis for them to carry out their research.
1.6    Limitations of the study
A limitation encountered in this study was in the area of data as data were not available for all quoted banks in Nigeria. This therefore restricted the study to make use of the number of banks available for the time period under consideration therefore reducing the sample size. Also imprecise measurement of variable as there is no uniform way of measuring a particular variable.