Mercy Ekele, Zainab Dabo


This research investigated the effect of corporate social responsibility on financial performance of manufacturing industries listed firms on Nigerian Stock Exchange (NSE).Competitiveness of financial sector has increased manifold and the issue of corporate social responsibility (CSR) has become an indispensable concern parallel to concentrating on profitability enhancement. Businesses are consider as social units, they have to serve stakeholders, and tend to execute CSR on priority basis and subsequent disclosure as well. Unhealthy CSR policies may cause externalities and eventual relinquished customers and their societies. The main purpose of study is to shed light on the effect of CSR on financial performance (FFP) of manufacturing firms of Nigeria, using a sample of 20 firms listed with Nigerian stock exchange for the period of 12 years from 2005 to 2016, selected based upon first tier and market capitalization. We applied fully modified regression (FMOLS) and Engel-Granger cointegration models to investigate the effect of CSR on FFP. Empirical findings signify the robustness of FMOLS model that documented a positive and significant effect of CSR on return on assets. This premise holds that CSR has positive and significant effect on FFP of selected manufacturing firms of Nigeria. Based upon key findings, this study postulates CSR phenomenon is consider as an essential growth element and FFP-boosting tool by manufacturing industry of Nigeria. Eventually, mainstream of the studies on CSR are in context of well-established companies in the country, however, developing nations are least emphasized, thus the findings of this study greatly contribute in body of knowledge as well as offer pivotal implications for policy makers and governance of industrial sector.


Corporate Social Responsibility, Financial Performance, ManufacturingFirm

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