Corporate social responsibility as a corporate strategy: The multiplier effect on the market value of a firm (Evidence from mobile telephone network outlets in Abuja, Nigeria

Abstract

This study on the effect of corporate social responsibility on the market value of Mobile Telephone Network (MTN) in Abuja was carried out to examine whether corporate social responsibility has any effect on market value of firms. Corporate social responsibility was represented with proxies such as welfare responsibilities (WR), and economic responsibilities (EC). The survey research design was adopted for the study while a questionnaire was designed and administered on the staff of the telecommunication firms. The population of the study was made up of 200 staff and Taro Yamane formular was used in arriving at a sample size of 150 staff. The regression analysis was used in data analysis using statistical package for social sciences (SPSS). The findings of the study amongst other things showed that discharge of economic responsibilities to host communities has significant effect on the market value of MTN in Abuja Nigeria. Also the discharge of welfare responsibilities to host communities has significant effect on the market value of MTN in Abuja Nigeria. In summary, the findings showed that corporate social responsibility of MTN contribute to its market value. It was then recommended amongst others, that telecommunication firms should focus on how to improve their economic and welfare responsibilities in order to further increase its market value.