The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria (Published)
Corporate Social Responsibility (CSR) initiatives are charitable events and methods for improving a company’s image, satisfying key stakeholders, and increasing financial performance. The issue of CSR initiatives on capital growth and sustainability remains imperative for this study. Therefore, this study is set out to examine the effect of corporate social responsibility disclosure index on firm performance of selected sectoral industries in Nigeria and to investigate the effect of corporate social responsibility on market value of selected sectoral industries in Nigeria. This study adopts multi-stage sampling approaches. A quantitative method was used in which a deductive technique was adopted because the research was based on existing theories and findings from previous investigations. Descriptive statistics, correlation regression panel and cross sectional analysis were adopted for the purpose of this study. The result showed that CSR as a variable has the highest mean = 69.7608) with a standard deviation = 11.7713 indicates that CSR is the most sensitivity variable, while leverage (LEV) has the second highest mean = 55.0760 with a standard deviation = 182.3009 and SIZE has mean = 16.9473 with a standard deviation = 1.0996 indicates that the value of corporate SIZE is also a huge factor to the study. However, the correlations statistics shows that return on asset (ROE) has a positive correction = 0.4468 with return on equity (ROA) at 5 percent level of significant. TobinQ has a positive relationship with ROA = 0.5321 and ROE = 0.0842 at 5 percent level of significant respectively. CSR has a negative relationship with ROA = −0.0948*, ROE = −0.0760 and Tobin Q = −0.0734 at 5 percent level of significant respectively. SIZE has a positive significant relationship with ROA = 0.0589, ROE = 0.0826 and CSR = 0.2449. The findings revealed that firms in Nigeria are yet to significantly use CSR to promote their performances like what is done by firms in developed economies. Therefore, as part of the recommendation from this study, Nigerian firms are advised to pay more attention to being CSR responsible and find ways by which this can translate to improved profit and enhancement of their overall performances.
Citation: Olorunnisola A. O and Usman O. A (2023) The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 3, pp.1-26
Keywords: Corporate Social Responsibility (CSR, Firm, Performance, disclosure index
The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria (Published)
Corporate Social Responsibility (CSR) initiatives are charitable events and methods for improving a company’s image, satisfying key stakeholders, and increasing financial performance. The issue of CSR initiatives on capital growth and sustainability remains imperative for this study. Therefore, this study is set out to examine the effect of corporate social responsibility disclosure index on firm performance of selected sectoral industries in Nigeria and to investigate the effect of corporate social responsibility on market value of selected sectoral industries in Nigeria. This study adopts multi-stage sampling approaches. A quantitative method was used in which a deductive technique was adopted because the research was based on existing theories and findings from previous investigations. Descriptive statistics, correlation regression panel and cross sectional analysis were adopted for the purpose of this study. The result showed that CSR as a variable has the highest mean = 69.7608) with a standard deviation = 11.7713 indicates that CSR is the most sensitivity variable, while leverage (LEV) has the second highest mean = 55.0760 with a standard deviation = 182.3009 and SIZE has mean = 16.9473 with a standard deviation = 1.0996 indicates that the value of corporate SIZE is also a huge factor to the study. However, the correlations statistics shows that return on asset (ROE) has a positive correction = 0.4468 with return on equity (ROA) at 5 percent level of significant. TobinQ has a positive relationship with ROA = 0.5321 and ROE = 0.0842 at 5 percent level of significant respectively. CSR has a negative relationship with ROA = −0.0948*, ROE = −0.0760 and Tobin Q = −0.0734 at 5 percent level of significant respectively. SIZE has a positive significant relationship with ROA = 0.0589, ROE = 0.0826 and CSR = 0.2449. The findings revealed that firms in Nigeria are yet to significantly use CSR to promote their performances like what is done by firms in developed economies. Therefore, as part of the recommendation from this study, Nigerian firms are advised to pay more attention to being CSR responsible and find ways by which this can translate to improved profit and enhancement of their overall performances.
Citation: Olorunnisola A. O and Usman O.A (2023) The Effect of Corporate Social Responsibility Disclosure Index on Firm Performance of Selected Sectoral Industries in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 2, pp.36-61
Keywords: Corporate Social Responsibility (CSR, Firm, Performance, disclosure index