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Corporate Social Responsibility and Firms’ Financial Performance: A Study of Nigerian Consumer Goods Companies

Author

Listed:
  • Emamoke Jarikre Victor
  • Omodero Cordelia Onyinyechi

    (Covenant University Ota, Ogun State, Nigeria)

Abstract

The study is based on corporate social responsibility and financial performance of companies in Nigeria. The study focuses on the issues and ideologies that surround the practices of corporate social responsibility by consumer goods companies in Nigeria. The main objective of the study is to explore the impact of corporate social responsibility on profit after tax, earnings per share and net asset per share of listed consumer goods companies in Nigeria. The study adopts ex-post facto research design. Data were collected from financial reports of five listed consumer goods companies in Nigeria for a period of 5 years from 2015 to 2019. The financial reports and the hypotheses were statistically analysed using the panel data regression analysis. The results revealed a positive but insignificant effect of corporate social responsibility on profit after tax, earnings per share and net asset per share. According to the findings of the study, corporate social responsibility requires more attention and commitment from corporations because it ensures benefits other than profits which in the end boost financial performance.

Suggested Citation

  • Emamoke Jarikre Victor & Omodero Cordelia Onyinyechi, 2021. "Corporate Social Responsibility and Firms’ Financial Performance: A Study of Nigerian Consumer Goods Companies," Economics and Business, Sciendo, vol. 35(1), pages 229-248, January.
    • Handle: RePEc:vrs:ecobus:v:35:y:2021:i:1:p:229-248:n:13
    DOI: 10.2478/eb-2021-0016
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    References listed on IDEAS

    as
    1. Freeman, R. Edward, 1994. "The Politics of Stakeholder Theory: Some Future Directions1," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 409-421, October.
    2. Nuttaneeya Torugsa & Wayne O’Donohue & Rob Hecker, 2012. "Capabilities, Proactive CSR and Financial Performance in SMEs: Empirical Evidence from an Australian Manufacturing Industry Sector," Journal of Business Ethics, Springer, vol. 109(4), pages 483-500, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate social responsibility; Earnings; Financial reports; Profit after taxnet asset;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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    Access and download statistics

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