Effect of Corporate Social Responsibility on Financial Performance of Quoted Telecommunication Companies in Nigeria

This study examines the effect of corporate social responsibility on Financial Performance of quoted telecommunication companies in Nigeria. Ex-post Facto research design is adopted for this study which replied on secondary data. The data is analyzed using panel regression technique. The population of the study is made up of eight telecommunication companies in Nigeria While the sample size is two, over a ten years’ period from 2013 to 2022. The regression results reveal important contrasts in the financial impact of CSR components. The significant positive relationship between donations and ROA supports the view that charitable giving. In contrast, the significant negative effect of social amenities on ROA suggests that such projects, though aligned with social expectations, may not generate immediate financial returns. The inferential analysis established a positive and statistically significant relationship between donations and financial performance (? = 687.45, p = 0.002), suggesting that charitable contributions enhance public goodwill and translate into improved operational outcomes. In contrast, social amenities had a significant but negative effect on ROA (? = –1256.95, p = 0.001), implying that while socially valuable, these projects may place financial strain on firms in the short term due to their capital-intensive nature. The study recommend that Strategic Alignment of CSR with Business Objectives: Telecommunication companies should align their donation strategies with business objectives to ensure measurable returns. Donations that are targeted toward sectors closely related to the firm’s operations such as ICT in education or digital health may produce greater reputational and financial value.