IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Abstract

This study examined the impact of corporate social responsibility (CSR) on financial performance of listed industrial goods firms in Nigeria. Specific objectives include to: examine the impact of social and relationship disclosure (SRD) on return on assets (ROA) of listed industrial goods firms in Nigeria; ascertain the impact of education sponsorship disclosure (ESD) on ROA of listed industrial goods firms in Nigeria, and examine the impact of Public health sponsorship disclosure (PHD) on ROA of listed industrial goods firms in Nigeria. Ex post facto research design was adopted for the study. A sample of nine (9) industrial goods firms listed on the Nigerian Exchange Group was used. Data were extracted from the annual reports and accounts of these firms from 2013 to 2023. The study employed the panel least squares (PLS) regression model. The results obtained from the study revealed that SRD, (ESD), and PHD have positive and significant impacts on financial performance (ROA) of listed industrial goods firms in Nigeria. Based on the findings, the study recommended among others that Nigerian industrial goods firms should pay more attention to social and relationship activities within their host community and find ways to use it to improve its profitability. Industrial goods firms in Nigeria should also embark on more educational sponsorship programmes and give full disclosure of these programmes in a bid to significantly enhance its goodwill and achieve long-term profitability. Lastly, Industrial goods companies should also engage more in public health sponsorship and report such in detail in order to achieve favourable market competition, as well as firm reputation