American Journal of Business and Society
Articles Information
American Journal of Business and Society, Vol.4, No.2, Jun. 2019, Pub. Date: Jun. 25, 2019
Corporate Social Responsibility and Financial Performance of Listed Non-Financial Services Companies in Nigeria
Pages: 56-71 Views: 245 Downloads: 127
Authors
[01] Mohammed Ibrahim, Department of Accounting, Faculty of Arts and Social Sciences, Gombe State University, Gombe, Nigeria.
[02] Kabir Tahir Hamid, Department of Accounting, Faculty of Management Sciences, Bayero University, Kano, Nigeria.
Abstract
This study examines the impact of corporate social responsibility on financial performance of listed non-financial services companies in Nigeria. The study used ex-post factor research design and utilized secondary data collected from the annual report and accounts of twenty three (23) sampled listed non-financial services companies in Nigeria for a period of 10 years (2008-2017). The sample of the study was arrived at using census sampling technique in which all the elements of the population were used for the study. The data were analyzed using descriptive statistics, correlation and regression analysis (GLS Fixed Effect) with the aid of Stata Version 14.0. Robustness tests, namely multicollinearity, heteroscedasticity, normality of residuals, Hausman specification and F-Test were conducted to validate the results. The finding of the study reveals that CSR has significant positive impact on financial performance. The study concludes that financial performance of listed companies in Nigeria can be enhanced through engaging in socially responsible investments. The study therefore, recommends among others that for an increased financial performance, listed firms in Nigeria after an industry examination should intensify more efforts in carrying out their CSR which can serve as a source of competitive advantage. Also, Securities and Exchange Commission (SEC) should come up with Social Disclosure Index (SDI) and make it mandatory for companies to comply with, which will encourage them to engage in socially responsible investments.
Keywords
Corporate Social Responsibility, Financial Performance, GLS Fixed Effect, Nigeria
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