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| Empirical Study of Effect of Corporate Social Responsibility on Firm Performance in Nigeria |
Ugwu, I. Virginus Ph.D and Nwakoby, N. Peace Ph.D
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Abstract:
The study empirically determined the Effect of Corporate Social Responsibility CSR on Firm Performance in Nigeria. We utilized a pooled research design which is a combination of both cross-sectional and time-series properties and secondary data sourced from annual reports of the Nigerian Stock Exchange (NSE). The population consists of all quoted firms in NSE, 2015-2019; while a sample size is restricted to (24) big firms that have consistent elements of CSR in their annual published report for the period. The data collected are analyzed with: Descriptive Statistics; Correlation Analysis; Haussmann Test that selected Random Effect and Ordinary Least Square. The results find that, F-statistics value is 3.752, and its prob. value is 0.000, indicating that Firm Performance (ROCE and Tobin-Q), is statistically significant at 1 % levels. Again, the Adjusted R-sq shows about 32.17% of the systematic variation in the dependent variables (ROCE, Tobin-Q) in the pooled firms over the period of interest, was jointly explained by the explanatory variables; while the unexplained part of the criterion variable is attributable to other CSR factors outside the scope of this study. The results of the three CSR variables are that: OHS as CSR has negative significant effects; CGD as CSR has a positive significant effect; and EMPW as a CSR has a negative significant effect on the performance of firms listed in Nigeria. We recommend that firms should increase corporate gifts and donations as a corporate social responsibility because they boast firm value and performance.
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