This paper investigates the effect of corporate social responsibility (CSR) on investment efficiency. The study adopted an expo facto research design. The population for the study comprised 23 Deposit Money Banks (DMBs) on the Nigerian Exchange Group (NGX) from 2012 to 2021. A total of 10 DMBs were purposively selected as sample size. The ratio of net cash flow from financing activities was used as a proxy for Investment Efficiency and proxy for corporate social responsibility parameters (e.g. CSR, local community disclosure, education sponsorship disclosure, art and culture sponsorship disclosure, among others), and other relevant investment efficiency indicators such as Cash Flow. Secondary data were obtained from Annual Reports from selected banks. Data collected were analyzed using multiple regressions as the inferential statistics. CSR reports have a negative coefficient value of -2.734269, which is statistically significant (p-value = 0.0178). CSR reports and investment efficiency are negatively related. ROA has a positive coefficient value of 1.076975 which is statistically significant which is statistically significant (p-value = 0.0410). ROA and investment efficiency are positively related. Leverage has a positive coefficient value of 0.068324 on investment efficiency which is statistically significant (p-value = 0.0466). Leverage and investment efficiency are positively related. This study concluded that CSR has effect on the investment efficiency of Nigerian DMBs.
Oladejo et al. (2025) studied this question.