SOCIAL RESPONSIBILITY DISCLOSURES AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS IN NIGERIA

Abstract

Social responsibility disclosure has come to stay as an important concept in the business all over the world specially developing countries like Nigeria. Social responsibility disclosures studies in Nigeria have concentrated on multinational firms particularly the oil and gas firms in the Niger Delta region and banking industries, while none or less has been done on other sector like the manufacturing firms. Therefore, this study investigated what determines social responsibility disclosures and financial performance of manufacturing firms in Nigeria. The study adopted Expost-facto research design. The study used secondary sourced of data collection from Nigeria Stock Exchange website of fourth eight (48) yearly period from financial reports of eight (8) manufacturing firms that covered period 2015 – 2020. This study used estimated technique of both Pearson Moment Correlation Coefficients and Simple Linear Regression Analysis method with the help of Statistical Package for Social Science (SPSS) to run the coefficient. The empirical findings indicate that, community development/donation of social responsibility disclosures had no statistically and significantly relationship on profit before tax and return on equity of financial performance among manufacturing firms selected under the study in Nigeria. Therefore, the study concluded that, mere investing in social responsibility activities without a critical analysis and a channel of disclosure of such activities to stakeholders will not impact positively on the firm’s financial performance.