Impact of Philanthropic Corporate Social Responsibility on Firm Value of Deposit Money Banks in Nigeria

: This study examines the impact of Philanthropic Social Responsibility on firm value of listed Deposit Money Banks (DMBs) in Nigeria. The study was motivated by conflicting findings by researchers on the relationship between Philanthropic Social Responsibility and firm value. The study used the correlational and ex-post facto research designs. The secondary data were extracted from the annual report and accounts of the 11 listed Deposit Money Banks by the Security and Exchange Commission of Nigeria as at 31 st December 2021. Data collected was analysed using Regression analysis statistical tool with the aid of STATA analytical package. Findings from the analysis revealed that philanthropic Social Responsibility has significant positive relationship with the firm value of deposit money banks (DMB’s) in Nigeria. In view of the finding the study recommended that Management of deposit money banks (DMBs) listed in Nigeria should give more emphasis on philanthropic Responsibility. The is because of the positive role it’s play in improving the value of the firm


INTRODUCTION
The Banking industry is the major provider of financial intermediation and stimulates economic growth and development. The Nigerian banking industry plays an important role in facilitating and stimulating economic development (Agundu & Agbahiwe, 2014). In Nigeria, banks (Deposit Money Banks, DMBs) dominate the economy as it accounts for about 90 percent of the total assets in the system and about 65 percent of market capitalization of the Securities and Exchange Commission of Nigeria (Tule, 2017;Soludo 2012). The banking sector contributes 26. 5%, 22.7%, 25.6% and 24.1% This concept has changed the understanding of business objective from profit-making alone to being involved; businesses are now more interested in activities that will benefit the society (Iqbal et al, 2014). Entities that promote and practice CSR has strong possibilities of having enhanced performance, increased productivity level and better employee retention (Jain, Bhatia, & Arekar, 2021) . Besides, CSR can increase customer loyalty and satisfaction and improve production quality, stakeholder support, firm reputation, and sustainable business performance (Fenga, Akramb, Hieucand, & Tien, 2022). Corporate Social Responsibility (CSR) suggests that business enterprises have some responsibilities to society beyond that of making profits for their shareholders (Carroll & Shabana, 2010;Kanwal, Khanam, Nasreen, & Hameed, 2014). Business entities have a responsibility not only to their shareholders but to other stakeholders, by operating within the ambit of the law, protecting the environment, ensuring the standard and maximizing investors' returns. Krishnan (2012) suggested that business is aimed at improving the quality of life and build leadership that will generate a sense of trust among people which will increase the firm value of the business and ensure sustainability. Eko, Rina & Eny (2021), opined that an enterprise will try to maximize its firm value, ttherefore, maximizing firm value is crucial part of business operations. Meaning that for a company, maximizing firm value also means maximizing the prosperity of shareholders, which is also the company's goal.
One of the main goals of an enterprise is to increase the firm value. The firm value will be guaranteed to grow sustainably if the company pays attention to the economic, social, and environmental dimensions because sustainability balances economic, environmental, and community interests (Eko, Rina & Eny, 2021). Firm value is associated with stock prices and is connected to investors' view of the firm's performance. Maximizing firm value is very important as it also means maximizing shareholders' wealth, which is the main objective of firms. The main goal of every business entity is to maximize firm wealth or firm value (Sujoko, 2007). Firm value is reflected in stock prices that are either stable or increase over time. High stock price results in high firm value and impacts on the market confidence toward current firm performance and outlook for the future firm value of the entity (Sudiyatno, Puspitasari, & Kartika, 2012).

Corporate Social Responsibility
According to the Commission Green (2001), the CSR is a concept where companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Among other things, this definition helps to emphasize an important aspect of CSR, which is how enterprises interact with their internal and external stakeholders such as employees, management, suppliers, communities, customers, neighbours, nongovernmental organizations and public authorities. Carroll, 1979 viewed CSR as encompassing the legal, ethical, economic and other discretionary responsibilities that institutions have to society. When applied to individual firms, this is consistent with (Freeman, 1984) notion of stakeholder theory, which suggests that firms have a responsibility to a number of different interest groups, including employees, customers, suppliers, environmental concern, communities and society at large. As a result, different firms may have different objectives and standards for performance, depending on who the stakeholders are. These different stakeholders should force the firms to provide the greatest possible return to the capital that they have provided. Since this will include returns to shareholders, focusing on the financial performance of firms, which is the most readily measurable source for the firm's overall performance. Chauhana and Amita, (2014) suggested that the concept of CSR asserts that corporations have an obligation to consider the interests of customers, employees, shareholders, communities, as well as the ecological footprint in all aspects of their operations and business dealings.

Corporate Social Responsibility as Philanthropy
The early conceptualization of CSR was the philanthropic perspective whereby business firms make charitable donations or contributions to the society (Caroll, 1991). The organizations that make such corporate contributions do amplify such acts of generosity in their published information to draw public attention to them so as to garner support and legitimacy (Wu & Shen, 2013), although the sincerity of the benevolence act may be questioned by the profit-centeredness inherent in the nature of business (Jensen, 2010). The philanthropic responsibilities of a business involve being a good corporate citizen and include participation in initiatives or programmes that promote human welfare or goodwill. Examples include contributions to charities, social infrastructure development initiatives as well as education and health care programmes. Such activities are generally geared towards external stakeholder groups (Carroll 1979). Philanthropic responsibility should be directed to the support and development of the society and of the individual marginal groups through voluntary participation in social programs, including through social investment. The philanthropic responsibilities are voluntary activities that the society desires. Such gestures are in the form of corporate donations, charitable gifts or community involvement in purely corporate activities (Borgers & Pownall, 2014;Nofsinger & Varma, 2014). The society rewards the business firms for such philanthropic gestures in the form of loyalty to the firm and social acceptance of its products or services (Arnold & Valentine, 2013). However, Friedman (1970 warned that when firms indulge in philanthropic activities in anticipation of obtaining these rewards such activities do not constitute a CSR. This emphasizes the voluntary and no premeditated nature of the CSR concept. The debate as to the appropriateness and implications of CSR dates back to 1970 when the Nobelprize winner, Milton Friedman, argued that CSR was a fundamentally subversive doctrine in a free society. Friedman (1970) asserted that management should make as much money as possible whilst conform to the basic rules of society, both those embodied in law and those embodied in ethical custom with the exception that philanthropy is a private activity. Although views have changed, critics still argue that CSR imposes costs e.g. costs on their employees (by reducing salaries), customers (by charging higher prices) and most importantly on the business owners (by lowering returns), Researchers such as Aupperle, Hatfield and Carrol(1985) argued that firms engaging in CSR suffer a competitive disadvantage as these costs may have been avoided altogether or could have been borne by others, mainly the government. Nonetheless, philanthropy is the main characteristic of CSR in Africa carried out through education, health, the environment, and sports (Dartey-Baah & Amponsah-Tawiah, 2011).

Motivations/drivers for Corporate Social Responsibility
Firms' efforts to respond to different demands from diverse stakeholders, organizing from employees, customers, suppliers, and society to media, NGOs and governments (Ditlev-Simonsen & Midttun, 2011;McWilliams & Siegel, 2000). The key drivers connected with CSR can be separated into the following groups: stakeholder needs, performance, and motivation (Basu & Palazzo, 2008). Stakeholders are considered in this recent world as the biggest drivers of CSR. CSR is the range to which businesses meet the economic, legal, ethical and discretionary responsibilities destined on them by stakeholders (Maignan & Ferrell, 2001). Along with the Young and Rivers stated that the MNEs are feeling pressure for their subsidiaries not only from their home country stakeholders but also from the host country stakeholders. Another significant factor of stakeholders which is driving the thought of CSR among MNCs is an institutional commitment with stakeholders.
The stakeholder theory pointed out that 'it can be helpful for the firm to set in particular CSR performance that nonfinancial stakeholders separated to be important, as, without this, these groups can take back their support for the firm (McWilliams et al., 2006). CSR is not only driven by the stakeholders, but also by the desire of the companies' attainment of its competitive advantage over its competitors, having a stable working environment and building a happy, productive and healthy workforce. It was identified that these factors have stimulated multinational oil companies in Africa (Nigeria) to put in CSR activities; and this may not be case of Nigeria only, like consumers, employees, investors, business suppliers and customers which may drive CSR in the companies of the world (Brammer, Millington, & Rayton, 2007)). Maybe these market drivers independently drive the practice of CSR. The social organizations like NGOs or welfare committees may pressurize the companies to be responsible to the society. Paradoxically, apparently, this has sometimes led to Non-Governmental Organisations (NGOs) such as community organizations, international campaign groups and companies or business associations entering into partnerships to encourage, develop, manage and report CSR (Doh & Guay, 2006).
The government in the present world is playing a vital role in implementing CSR in companies. For example, in the education sector, government plays an effective role as a pioneer of CSR activities. It not only promotes a policy structure for national education and CSR but also designates CSR practices in the national education. This, in turn, presents a significant opportunity for businesses to lead from behind (Petkoski & Twose, 2003). The work of the CSR practice has generally reinforced the relevance of the four public sector roles in strengthening CSR mandating, facilitating, partnering, and endorsing (Ward, 2004). Collectively, organizations are signing up to organizations to advance CSR i.e. the UN Global Compact and the International Business Leaders Forum and even few companies are going for international compliance reporting; for example, the Global Reporting Initiative. Individually, companies are developing corporate codes to enable them to better articulate and embed their CSR across various countries of their operations and across their global supply chains (Kolk, 2005). It is also observed that the companies who cross borders are more attentive to their CSR than companies operating only in one country, as well as being sensitive to local CSR agendas (Chapple & Moon, 2005).
The top position of an organization and the quality of the person who is at the top level of management can embrace the practice of CSR in the organizations. Campbell stated that the experiences of a corporate manager in the educational sites influence CSR implementation (Campbell, 2007). Emphasis is on the personal competencies of the top managers for implementation of the CSR. As it was argued by Cassells and Lewis (2011); Waldman and Siegel, (2008), that the CEO, the firm's key decision-maker, by his personal qualities and supreme characteristics formulates corporate procedure in order to extend the firm's CSR initiatives and that the CEO is in a prime position to influence CSR strategy and practice.

Corporate Social Responsibility and Firm Value
Fodio, Abu-Abdissamad and Oba (2013), examined the impact of Corporate Social Responsibility (CSR) on the market value of quoted financial firms in Nigeria for the period 2004 -2008. The study collected secondary data from the annual reports and accounts of thirty-five (35) firms in the financial services listed on the Security and Exchange Commission of Nigeria and adopted parsimonious regression model for the analysis of the data collected. Where independent variable, CSR which is proxied as Human Resource Management, Environmental performance and Community Development; and the dependent variable firm value proxied using Tobin's Q. The study also adopted firm size, leverage, growth and dividend payment as control variables. The findings of the study revealed that sector classification and positive earnings in the previous year are significant instruments in estimating CSR and concluded that socially responsible efforts of firms trigger improved market value and that such value is influenced by observable moderating factors. Gherghina and Vintilă (2016), explored the Impact of Corporate Social Responsibility Policies on Firm Value of Listed Companies in Romania. The study aimed at providing evidence on the links between CSR and firm value on the example of listed companies in Romania. To achieve the study objective, the study collected secondary data from annual reports considering subindex on the rights, health, safety, security, and development. Using Multivariate Regression Models to analyse the data, the study found a positive impact of the CSR global index and CSR subindices, except for the CSR subindex related to environmental protection, on firm value. Lee and Choi (2021) investigated impact of internal and external corporate social responsibility activities on firm value. The aim is to determine whether or not internal and external CSR enhances firm value. The study was focused on CSR activities related to business partners in supply chains. Using an index from the Korea Commission for Corporate Partnership that indicated whether a firm shares its profits with business partner companies. The study found that firm value increases as this internal CSR increases. Also, firms engaged only in external CSR have lower firm value than non-CSR firms, after controlling for internal CSR andthat firms involved in both internal and external CSR have higher value enhances firm value.
Banks operating in Nigeria are faced with other challenges. The society and host communities often clamour for firms to increase their philanthropic responsibility activities in form of contribution to the betterment of the community, by way of building of schools, hospitals, the award of scholarships, construction of roads and provision of other social amenities. However, engaging in these activities will cost the firms more funds, whereas the firm wants to increase profitability and improve firm value. The challenge is how these activities may positively impact on or reflect in their profitability and in the long-run the firm value.
There has been issues of mergers, acquisitions and takeovers bank Government institution being experience since the recapitalization policy of 2004. All these may affect investors' confidence and possibly the firm value of Deposit Money Banks in Nigeria. Moreso, the ranking and rating of banks in Nigeria has been on the negative directive.

METHODOLOGY
The design applied to this study is the correlational and ex-post facto research designs. The correlational design described and measure the degree of association/relationship between the independent variables and the dependant variable. Thus, correlational research design is suitable since the aim of this study focuses on examining the relationship between CSR and firm value. While the ex-post facto research design examines the philanthropic activities possible relationship with the firm value of Deposit Money Banks in Nigeria.
To achieve the objective of the study, the population of this study comprises of the 14 listed Deposit Money Banks (DMBs) by the Securities and Exchange Commission of Nigeria as at 31st December 2021. However only Eleven (11) of the listed banks are used for this study. Three (3) DMBs were not considered for the study. Unity bank provided abridged financial statement for some of the years which did not contain the data need of the study and Ecobank annual reports and accounts were presented in Dollars to reflect their activities in Africa as such it was not possible to separate the activities that related to their operations in Nigeria while Jaiz bank was listed in 2016 which means it does not have data for 2011 to 2015.
The secondary data were extracted from the annual report and accounts of the sampled Deposit Money Banks in Nigeria. The data in respect of the Corporate Social Responsibility (CSR) components and firm value indicators were extracted from the annual reports and accounts of the Deposit Money Banks for the period of eleven (11) years (2011 -2021) which represents the periods when International Financial Reporting Standard (IFRS) was adopted and implemented by the Nigerian banking industry.
The objective of this study to examine the impact of philanthropic responsibility on the firm value of Deposit Money Banks in Nigeria. To achieve this objective the null hypothesis below was tested and interpreted: Ho: Philanthropic responsibility does not have a significant impact on the firm value of Deposit Money Banks in Nigeria Corporate Social Responsibility represented by Philanthropic social responsibility was measured using total donations, donations to academic and health development and donations in other forms. To test the hypotheses formulated and achieve the objectives of the study, the regression model was adopted because the study collected nominal quantitative data. The analysis was achieved through the use of statistics and data (STATA), given its detailed presentation of result that aid comprehensive interpretation. To link CSR and Firm Value of Deposit Money Banks in Nigeria, the regression model as in Kurniasari and Warastuti (2015). Thus the following model was applied in testing the hypotheses subject to Hausman Specification test:   Table 1 shows that the measure of performance, Tobinq of the deposit money banks listed in Nigeria has a mean value of 12.394 with standard deviation of 1.426, and minimum and maximum values of 7.824 and 15.445 respectively. This implies that the average performance of deposit money banks listed in Nigeria is 12.394 (that is, the response of Tobin q covers 12.394in deposit money banks listed in Nigeria), and the deviation from both sides of the mean is 1.426. This suggests a moderate dispersion of the data from the mean because the standard deviation is close to the mean value. The table also indicate a minimum Tobinq of 7.824 implying a situation in which the Tobinq did not cover any portion of deposit money banks; on the other hand, it reveals a maximum efficiency of 15.445 implying a situation where the Tobinq covered 15.445 of the deposit money banks firm value index. The peak of the data is indicated by the kurtosis value of 1.391, suggesting that most of the values are close to the mean value; hence the data meet a normal distribution assumption. The coefficient of Skewness of 0.228 implies that the data is moderately and positively skewed (that is, the data cut across the normal distribution curve), thus, the data does meet the symmetrical distribution assumption.
However, the table shows that the measure of philanthropic social responsibility using total donation of the Nigerian DMBs has a mean value of 3.228 with standard deviation of 1.534, and minimum and maximum values of 0.717 and 5.886 respectively. This implies that the average firm value of DMBs in Nigeria is 3.228, and the deviation from both sides of the mean is 1.534. This suggests a moderate dispersion of the data from the mean because the standard deviation is close to the mean value. The table further indicate a minimum total donation of 0.717 implying a situation in which the one of the DMBs at a particular financial year engage only 70% of the amount budgeted for philanthropic social responsibility; on the other hand, it reveals a maximum TotDon of 5.89. The peak of the data is indicated by the kurtosis value of 1.391, suggesting that most of the values are close to the mean In addition, the table shows that the measure of School and Hospital donation (SchHosdON) of listed deposit money banks in Nigeria has a mean value of 7.0059 with standard deviation of 1.629, and minimum and maximum values of 0 and 8.99 respectively. This implies that the average school and hospital donations of listed deposit money banks (DMBs) in Nigeria is 7.0059, and the deviation from both sides of the mean is 1.629. This suggests a moderate dispersion of the data from the mean because the standard deviation is seen to be close to the mean value. The peak of the data is indicated by the value of the Kurtosis 4.629, indicating a normally distributed curve. The coefficient of Skewness of -1.182 implies that the data is negatively but moderately skewed (that is, the data cut across a normally distributed curve), thus, the data is within the symmetrical distribution assumption. The table also indicate a minimum value less than 0 for other donations which imply a situation a bank in a particular year did not donation any fund to other forms of corporate social responsibilities. The mean value indicates 0.0852 and on a standard deviation of 0.419, implying a situation in which the deviation of the data from the mean value is not far, thus, the data is within the normally distributed curve. The peak of the data is indicated by the kurtosis value of 79.925 suggesting that most of the values are within the acceptable limit and within the normal distribution assumption. The coefficient of Skewness of -8.2431 implies that the data is negatively but moderately skewed (that is, the data cut across a normally distributed curve), thus, the data is within the symmetrical distribution assumption.  Table 2 shows that firm value if negatively correlated with total donation (TotDon) to the tune of 13%. This implies that firm value has indirect relationship with TotDon. Schools and Hospital Donations (SchHosDon) is found to have a negative relationship with Firm Value of DMBs in Nigeria at 68%. This indicates an inverse correlation between the two variables. Firm Value recorded a positive relationship with other donations (OtherDon) at a magnitude of 6%. This shows a correlation between the two variables in the same direction. . corr tobinq totdon schhosdon otherdon The relationship between total donation and other independent variable, specifically school and hospital donation (SchHosDon) is positive and was recorded to the tune of 7%. However, these relationships can be regarded as significant. total donation and other donations are positively related at 6%. However, all of the variables were not strongly correlated. Schools and hospital donation (ShHosDon) and other donations (OtherDon) are correlated positively to the a rate of 14% which is considered as strong.  Table 3 shows the result of the multicollinearity test for the dependent and independent variables. The test result of each variable ranges within the acceptable benchmark. Hence, the study variance inflation factor (VIF) and tolerance values (TV) were revealed to be consistently smaller than 10 and less than 1 respectively for all the explanatory variables in the regression result. However, the mean VIF of 1.03 supplements this claim, therefore, multicollinearity is not a threat to the validity of the study result.  The cumulative R2 of 0.5101 for which is the multiple coefficients of determination, gave the proportion of the total variation in the dependent (firm value) variable as explained by the independent variables (total donations, school and hospital donation and other donations) philanthropic social responsibility jointly. Hence, it signified that 51% of the total variation in firm value of listed Deposit Money Banks in Nigeria is accounted for by the proportion of total donations, school and hospital donation and other donations (philanthropic social responsibility) variables used in this study. The Fisher's Statistics value of 38.83 which is significant at 1%, indicates that philanthropic responsibility variable and firm value model is fit. It implies that for any change in philanthropic social responsibility of the listed Deposit Money Banks in Nigeria, firm value (Tobin's q) will be affected directly. The P-value of the Fisher's test which is statistically significant at a level of 0.000 implies that there is 99.9% assurance that the relationships among the variables were not due to mere chance. As such, the results from the regression can be relied upon. In addition, it implies that the independent variables reliably predict the dependent variable of the study. From the table 4, it is observed that the t-values for philanthropic variable, total donations, school and hospital donation and other donations are -2.83, -9.44 and 2.30 respectively also and beta coefficients of -.1794, -.61864, .5695 and 7.62602 with p-values of 0.006, 0.000, 0.024 and 0.000 for total donations, school and hospital donation and other donations respectively. This signifies that philanthropic social responsibility positively and statistically influences firm value (Tobin's Q) of listed deposit money banks (DMBs) in Nigeria. It also implies that for every 1% increase in the philanthropic social responsibility (CSR) engage by deposit money banks their firm value will improve positively. In other words, this result implies that for every single increase in the philanthropic social responsibility made in form of (total donations, school and hospital donation and other donations) by listed DMBs in Nigeria, their firm value performance will be better. This result is not in any way surprising as promoting social activism or welfare of the immediate community by the DMBs translate to customers as extent concern to them by the said DMB. This notion gives them confidence and encourage to save more in the bank which will letter be disburse as facility (credit) by the banks.

Hypothesis
In addition, practically direct CSR participation inform of welfare to the immediate community encourage them to save more in the bank, because of the feeling they have that such bank touches their lives directly, therefore, the DMBs can lend more from their available deposit which will invariably affect their firm value positively. This result supports the result of Carroll (1991); Fodio et al., (2013).

CONCLUSION AND RECOMMENDATION
Based on the discussion and analysis, the study concludes that the study has provided both empirical and statistical evidence on the that the independent variable (philanthropic responsibility) predicts and explained dependent variable (firm value) of deposit money banks listed in Nigeria. Thus, philanthropic responsibility impact on the firm value of deposit money banks (DMBs) listed in Nigeria positively. The study therefor recommended that Management of deposit money banks (DMBs) listed in Nigeria should give more emphasis on philanthropic Responsibility. The is because of the positive role it's play in improving the value of the firm