Abstract:
Despite the increasing studies on corporate social responsibility and financial
performance among high performing companies, very little interest has focused on
Ghanaian firms. This study, therefore, examined the relationship between corporate
social responsibility (CSR) and financial performance (FP) of the financial firms
among Ghana Club 100. A secondary data were used for the study, and 20 financial
firms whose CSR expenditure reports were available were selected. A correlation
design was used using a three- year (2013-15) data on return on equity (financial
performance) and firm size, and multiple regression analysis conducted. The results
indicated that CSR has a positive but non-significant effect on firm's ROE, but firm
size showed a significant positive relationship with ROE. However, both firm size and
CSR provides a good predictive model of firm financial performance. The study
recommends Ghanaian financial firms to engage in CSR activities as doing so may
improve their financial performance. A CSR expenditure criterion should also be used
in ranking Ghana Club 100 firms, to facilitate the collection of secondary data for
future research that can cover all members to address the limitations of this study.
Keyword: Corporate Social Responsibility, Return on Equity, Firm Size, Club 100
