Impact of Public Relations Expenditure on Corporate Performance of Commercial Banks in Nigeria
Motivated by the high rate of bank distresses in Nigeria, the study dwelt on an appraisal of public relations practices on the corporate performance of commercial banks in the country. The objectives sought were to: Determine the effect of corporate image management practices on corporate performance of commercial banks in Nigeria; ascertain the effect of media relations practices on the corporate performance of commercial banks in Nigeria, and examine the impact of customer relations practices on the corporate performance of commercial banks in Nigeria. The study linked the expenditure on public relations to the importance accorded this activity, which should generate the desired level of good corporate image as a fundamental for customers' satisfaction. Survey research design were adopted in the study. The area of study was one of the major cosmopolitan cities in the country, Calabar in Cross River State, Nigeria. From a working population of 500 bank employees, a sample size of 60 was judgmentally determined. The data procured were analyzed with the chi square (X2) statistical tool. Results indicate that: The public relations practices, media relations practices and customer relations practices of commercial banks in Nigeria have significant effect on their corporate performance. It was then recommended among other things that: commercial banks in developing countries like Nigeria should employ public relations two way communications strategies as a tool for winning and sustaining the confidence, trust and patronage of their customers by shoring up their corporate image and performance. As a concomitance, a good business model should incorporate a reasonable public relations budget in order to shore up goodwill which is a vital variable in asset turnover equation.