CORPORATE SOCIAL RESPONSIBILITY AND PERFORMANCE OF FIRMS LISTED ON THE GHANA STOCK EXCHANGE BY FESTUS OTCHERE AMISSAH

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.