Abstract:
ABSTRACT
The purpose of the study examined the effect of corporate social responsibility
on the financial performance of listed firms on the Ghana Stock Exchange.
The study collected annual series data spanning from 2010 to 2016. The study
employed quantitative approach and sampled twenty (20) firms listed on the
Ghana Stock Exchange to examine the effect of corporate social responsibility
on the financial performance of listed firms on the Ghana Stock Exchange.
The study also obtained data on corporate social responsibility from audited
annual reports and data on performance was taken from Ghana Stock
Exchange fact book, GSE profile of listed firms and audited annual report. The
study also employed the generalized least squares panel regression analysis
technique for analysing the data. The study also measured the performance
using Return on Asset as an accounting based measure and Tobin‟s Q as
market based measure. The findings shown that ED of CSR has a positive
relationship with ROA and negatively related to Tobin‟s Q, CID has a positive
relationship on ROA and Tobin‟s Q, HRD has a negative relation with ROA
and Tobin‟s Q, PCD has a negative relation with ROA and positively related
to Tobin‟s Q. The study suggested that Security Exchange Commission must
make a policy and a law for firms to integrate CSR activities in their strategic
decisions to enable them improve their performance and the implementation
must be supervised by the Ministry of Trade and Industry.
