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CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Authors: Stella Anthony Ukpe, Emmanuel O. Emenyi & Usen P. Umo

ABSTRACT

The disclosure of CSR activities has gained significant attention as a means for organizations to demonstrate their commitment to ethical business practices. In view of this, this study examined the effect of corporate social responsibility disclosure & financial performance of listed industrial goods firms in Nigeria. Ex-post facto research design was adopted, and panel data covering ten (10) years (2013-2022) were collected across twelve (12) firms listed in industrial goods sector in Nigeria which formed the sample size of the study. The data collected were analyzed using descriptive statistics and multiple linear regression analysis via E-views 10.0 statistical package. The study findings included that community responsibility disclosure has a positive significant relationship (Coeff. = 0.0305{0.0047}) with return on equity of listed industrial goods firms in Nigeria while philanthropic responsibility disclosure has an insignificant negative relationship (Coeff. = -0.2898{0.0608}) with return on equity of listed industrial goods firms in Nigeria. It also revealed that social responsibility disclosure has a positive significant relationship (Coeff. = 0.2103{0.0165}) with return on equity of listed industrial goods firms in Nigeria. Hence, it was concluded that strong commitment to CSR disclosure exhibits exceptional financial performance. The study recommended, amongst others, that companies should reevaluate philanthropic initiatives to ensure they align with corporate strategy and positively impact financial performance

Keywords: Corporate Social Responsibility Disclosure, Financial Performance, Listed Industrial Goods Firms, and Nigeria.

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