Firm Performance and Corporate Social Responsibility Disclosure of Listed Companies in Nigeria: Inference from GMM Model

Abstract

The purpose of this research is to examine the effect of firm performance on corporate social responsibility disclosure of listed companies in Nigeria. Utilising the panel data analysis, for 324 firm-year observations, from 2012 to 2021 period, we estimate our model through the generalized method of moment (GMM). We find that return on assets (ROA), return on assets (ROE), dividend per share (DPS), and earnings per share (EPS) are positive and significantly affect corporate social responsibility disclosure (CSRD). This shows that companies are likely to disclose their corporate social responsibilities if they are profitable. The results also emphasize the importance of financial outcomes and its effects on CSR practices and transparent disclosure.  In our next study, we consider the use of firm size as a moderator to the relationship. Perhaps size matters, and that smaller firms might differ in performance and delivery of CSR compared to larger ones. Further studies could also incorporate performance variables like net profit margin, market value of shares, and corporate annual turnover. This study offers policy implications to regulatory agencies in their oversight function over what is disclosed in annual reports. The findings would be helpful to managers in maximising investor returns to continue to have an impact on the socioeconomic well-being of their host communities.