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Effect of Corporate Social Responsibility on financial performance of listed Fast-Moving Consumer Goods Firms in Nigeria

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Abstract

This study examined the relationships between Community Empowerment Expenditure (CEE) and Societal and Environmental Expenditure (SEE) on financial performance of listed fast-moving consumer goods firms in Nigeria. The study adopted the ex-post facto research design. The population comprises of the twenty-one (21) consumer goods firms listed on the Nigerian Stock Exchange (NSE) that are relevant to the study. The study made use of a sample of nine (9) listed FastMoving Consumer Goods Firms for the period of 10 years (2011 – 2020) based on purposive sampling technique thus giving 99 observations. The study adopted the fixed effect regression analysis due to the results of the Hausman test. The findings revealed that Community and Empowerment Expenditure and Societal and Environmental Expenditure has no significant effect on financial performance of quoted consumer good firms in Nigeria. The study established the negative contribution of CEE towards performance of consumer goods firms, and it lends itself to the fact that expenditure directed towards communities to the extent that they are reported in the annual reports are insignificant in influencing the level of performance. The study recommended that managers need to evaluate carefully in totality the implications of CSR before implementing CSR activities and that firms should endeavor to generate revenue through sales of waste, bye products, recycling of waste and accounting for environmental performance and expenditure as this can support development and increase in profitability and overall performance.

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  • Godwin Emmanuel, Oyedokun, & Oluwatoyin Julianah, Ayeni, 2022. "Effect of Corporate Social Responsibility on financial performance of listed Fast-Moving Consumer Goods Firms in Nigeria," Multidisciplinary Journal of Management Sciences, Association of Forensic Accounting Researchers (AFAR), vol. 4(3), pages 114-126, December.
    • Handle: RePEc:ris:amjoms:0066
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