CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

This study examined the effect of corporate social responsibility on financial performance of listed consumers goods firms in Nigeria. To achieve the objective of the study, the ex-post facto research design was used. Twenty one (21) consumers goods companies listed on the Nigeria Exchange Group (NGX) for the period 2015 to 2025 formed the population of the study. However, judgmental sampling was used to select 13 consumer goods firms. The data for the study were sourced from annual report and Nigerian Exchange Group fact books of the selected listed companies. The data collected were analyzed using multiple regression analysis using a panel estimated generalized least square (Panel-EGLS) regression, through E-views version 12. The independent variable, corporate social responsibility was proxied by corporate social donations (CSD), employee disclosure policy (EDP), and community related social responsibility disclosure policy (CRD), while financial performance was proxied by earnings per share (EPS). Results from hypothesis one revealed that there is a significant effect of corporate social donations on the earnings per share of listed consumer goods firms in Nigeria. Result from hypothesis two revealed that the effect of employee disclosure policy on earnings per share of listed consumer goods firms in Nigeria is not significant. Finally, result from hypothesis three revealed that the effect of community related social responsibility disclosure policy does not significantly affect earnings per share of listed consumer goods firms in Nigeria. Based on the findings, the study recommends that consumer goods firms should continue with their corporate social donation’s efforts, although it has insignificant effect on their financial performance, but prepares a ground for their operations. The study also recommends that consumer goods firms are encouraged to continue with their employee disclosure policy, as this will strengthen the confidence of their existing and potential customers.