FINANCIAL PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY IN LISTED NON FINANCIAL FIRMS IN NIGERIA

Authors

  • Armayau Yusuf Nigerian Defence-Kaduna
  • Mohammed Nma Ahmed Nigerian Defence-Kaduna
  • Joshua Okpanachi Nigerian Defence-Kaduna
  • Onipe Adabenege Yahaya Nigerian Defence-Kaduna
  • Samuel Eniola Agbi Nigerian Defence-Kaduna
  • Lami Musa Yaro Department of Business Administration, National Open University Of Nigeria
  • Zainab Yusuf Kaduna State University, Kaduna

DOI:

https://doi.org/10.57233/gujaf.v1i2.45

Keywords:

Financial Performance, Corporate Social Responsibility, Non-financial firms, Nigeria

Abstract

This study evaluates Financial Performance and Corporate Social Responsibility in listed Non-financial firms in Nigeria from 2009 to 2018. CSR practice by companies is virtually affected by their operations and performance. Therefore, companies with better
performance are expected to engage more in CSR and consider public interest in corporate decision making. The population of this study covers all the seventy-five (75) listed non-financial firms in Nigeria from January 2009 - 31st December, 2018, from
these a sample of fifty six (56) listed non-financial firms were selected by filtering. Narrowing down, the study to more specific term, it examines the effect of return on investment and net profit margin using leverage as control variables on CSR of listed
non-financial firms in Nigeria. The Researcher employs correlational and expo-facto research designs using panel multiple regression as techniques of data analysis. Quantitative approach was adopted in the study and the study aligns to positivist
paradigm. The study reveals that return on investment positively, strongly and statistically determines CSR measured at 1% level of significance respectively. Also, net profit margin positively influences the CSR of listed non-financial firms in Nigeria measured at 5% level of significance. The result implies that financial performance determines the CSR of non-financial firms in Nigeria. The study concludes that non-financial firms with high performance invest more in Corporate Social Services than low performing once. Therefore, the study recommends amongst others that managers of non-financial companies in Nigeria should improve their internal control mechanism for cost reduction and increase of net profit margin. While for return on investment, the
management of listed non-financial firms should maintain quality assets that are durable. This is necessary because of the potential of companies that have such assets to vote more funds towards CSR.

Author Biographies

Armayau Yusuf, Nigerian Defence-Kaduna

Department of Accounting,
Nigerian Defence-Kaduna

Mohammed Nma Ahmed , Nigerian Defence-Kaduna

Department of Accounting,
Nigerian Defence-Kaduna

Joshua Okpanachi, Nigerian Defence-Kaduna

Department of Accounting,
Nigerian Defence-Kaduna

Onipe Adabenege Yahaya , Nigerian Defence-Kaduna

Department of Accounting,
Nigerian Defence-Kaduna

Samuel Eniola Agbi, Nigerian Defence-Kaduna

Department of Accounting,
Faculty of Management Sciences,
Nigerian Defence-Kaduna

Lami Musa Yaro, Department of Business Administration, National Open University Of Nigeria

Department of Business Administration,
National Open University Of Nigeria

Zainab Yusuf, Kaduna State University, Kaduna

Department of Educational Foundations
Kaduna State University, Kaduna

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Published

2020-10-20

How to Cite

Yusuf, A. ., Nma Ahmed , M., Okpanachi, . J. ., Adabenege Yahaya , O., Eniola Agbi, S. ., Musa Yaro, L. ., & Yusuf, Z. . (2020). FINANCIAL PERFORMANCE AND CORPORATE SOCIAL RESPONSIBILITY IN LISTED NON FINANCIAL FIRMS IN NIGERIA. Gusau Journal of Accounting and Finance, 1(2), 14. https://doi.org/10.57233/gujaf.v1i2.45