EFFECT OF CAPITAL STRUCTURE ON CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA.

This study examined the effect of capital structure on corporate social responsibility expenditure (CSRE) of listed Deposit Money Banks in Nigeria. Specifically, the study investigated the influence of total debt to total assets, total debt to total equity, firm performance measured by return on assets, and firm size on corporate social responsibility expenditure. The study adopted an ex-post facto research design and relied on secondary data extracted from the published annual reports and financial statements of selected listed Deposit Money Banks in Nigeria over the period 2013–2024. Data were analyzed using descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression technique with the aid of Stata version 14. Four null hypotheses were formulated and tested at a 5% level of significance. The regression results revealed that total debt to total assets had a negative but statistically insignificant effect on corporate social responsibility expenditure, while total debt to total equity, return on assets, and firm size exhibited positive but insignificant relationships with corporate social responsibility expenditure. The overall model indicated that capital structure and firm characteristics do not significantly explain variations in corporate social responsibility expenditure among listed Deposit Money Banks in Nigeria during the period under review. The study concluded that corporate social responsibility expenditure in the Nigerian banking sector is largely policy-driven rather than influenced by capital structure or financial performance. The study recommended that Deposit Money Banks should strengthen internal CSR policy frameworks and that regulatory authorities should enhance CSR disclosure guidelines to improve transparency and accountability. The findings of this study contribute to existing literature on corporate social responsibility and capital structure in emerging economies.