Corporate Social Responsibility Disclosure and Financial Performance of some selected Quoted Manufacturing Companies in Nigeria
Author(s)
ADEDIPE, Oluwaseyi Ayodele (PhD) , IWUANYANWU, Unity Egwuchukwu ,
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Abstract
This study examined the corporate social responsibility disclosure and financial performance of some selected quoted manufacturing companies in Nigeria between the periods 2011-2020. The study used secondary data sources which were collected from the annual reports and financial statements of the listed manufacturing companies in the Nigerian Exchange Group (NGX Group). The variables used were explained by descriptive analysis, and panel regression analysis was used to determine the impact of environmental disclosure (pollution), social disclosure (staff training costs), and governance disclosure (board size) on the company's financial performance (return on asset, earnings per share). Correlation analysis was used to determine whether there is a relationship between corporate social responsibility disclosure and financial performance. The findings showed a meaningful connection between overall CSR parameters and financial success indicators. The only CSRD metric with a substantial positive correlation to return on assets and earnings per share was social disclosure, while environmental disclosure showed no correlation to financial success. The results led to the conclusion that CSR disclosure measures predicted the financial performance of particular Nigerian manufacturing enterprises. According to the report, encouraged corporate social responsibility disclosure will help companies' brands and reputations. Companies should have fewer board members for better decision-making.
Keywords
Environmental disclosure, social disclosure, governance disclosure, return on asset, earnings per share.
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