ABSTRACT
This research meticulously explores the intricate relationship between Corporate Sustainability Reporting (CSR) and the value of banks within the distinctive context of Nigeria’s banking sector. Utilizing a mixed-method approach, the study embraced both quantitative and qualitative research methodologies to garner a more holistic understanding of the phenomena under investigation. Quantitative analysis was conducted using financial performance metrics such as Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS) to rigorously assess the impact of CSR disclosures on the financial performance of banks. Additionally, content analysis was utilized, examining the CSR reports of Nigerian banks through standardized frameworks like the Global Reporting Initiative (GRI) index to comprehend the depth and quality of CSR disclosures.
In alignment with this, the study’s exploratory design facilitated a comprehensive review of secondary data sources, such as audited annual reports, to extract valuable insights into the CSR activities and their subsequent influence on the banks’ value. To ensure validity and reliability, the study emphasized ethical considerations, focusing on accurate citation and adherence to copyright and intellectual property rights.
The findings of this research indicate a positive relationship between CSR reporting and the value of banks in Nigeria. Specifically, banks that exhibited a higher level of CSR disclosure demonstrated enhanced financial performance, a higher market valuation, and improved customer satisfaction levels. Moreover, a noteworthy observation was the positive correlation between adherence to sustainability regulations and a bank’s financial performance.
This study, therefore, provides pivotal insights into the role of CSR in augmenting the value of banks in Nigeria, underscoring its significance as a strategic tool in fostering sustainable banking practices, enhancing stakeholder relationships, and improving overall bank performance within the unique Nigerian market context.
