Firms' performance and corporate social disclosures: cross–sectional evidence of Nigerian firms. (17th October 2014)

• Record Type: Journal Article
• Authors: Moses, Olayinka; Jatau, Ulan Victoria; Ande, Janet Oyemine Modupe; Okwoli, Ambrose Abalike
• Is Part Of: International journal of management practice. Volume 7:Number 4(2014)
• Page Start: 341
• Page End: 365
• Publication Date: 2014-10-17
• Subjects: corporate social responsibility -- CSR disclosure -- transparent reporting -- firm performance -- financial performance -- disclosure index -- Nigeria -- transparency -- Global Reporting Initiative -- GRI -- EPS -- earnings per share -- annual turnover -- legislation -- tracking; Management -- Periodicals; 658.005
• Languages: English
• ISSNs: 1477-9064

Abstract

This study examines the relationship that exists between Firms' Financial Performance (FFP) and Corporate Social Responsibility Disclosures (CSRD) on one hand and the extent to which firms in Nigeria are involved in transparent corporate social responsibility disclosures on the other hand. A modified 25–theme Global Reporting Initiative (GRI) disclosure index and firms' Earnings Per Share (EPS) along with the Companies Annual Turnover (CAT) was used to determine the impact CSRD has on FFP. The finding of the study shows that firms in Nigeria have a positive insignificant relationship between CSRD and CAT and their EPS. The extent of CSRD by quoted companies in Nigeria was found to be at a 53% threshold; which falls below the 75% global benchmark for excellent disclosure. The study recommends among others the use of legislations to elicit detailed disclosures and the need for separate tracking of social responsibility costs in annual accounts of companies.