Abstract:
Most firms exist without much effect on society, on the grounds that their financial performance is not favourably. Firms have devoted their time and money on all types of philanthropic concerns such as financial donations and assistance provided to non-profit local and non-local organisations and communities, including donations in fields such as arts, education, housing, housing, health, social welfare, and government. The purpose of the study therefore, is to assess the impacts of corporate social responsibility on corporate financial performance of non-financial firms listed on Ghana Stock Exchange. The study employed quantitative approach and descriptive survey design. Secondary data was collected from non-financial listed firms on the Ghana Stock Exchange from the annual reports and financial statements of the firms covering the period 2000 to 2018 of the 21 non-financial firms sampled. The study employed econometric formula for panel regression model by adopting random estimation technique in estimating model coefficients. The results showed that income to cost ratio has statistically significant negative effect on ROA and EVA. CSR for employees of non-financial firms listed on GSE has statistically significant inverse relationship with ROA. Conversely, CSR for employees has statistically significant positive effect on EVA. The study recommended that management should negotiate for favourable interest and debt payment with suppliers in the short-term. The study also recommends that realistic and acceptable wages and benefits should be paid to employees on a regular basis.
