Corporate Social-Environmental Reporting and Firm Performance of Listed Firms in Nigeria

Abstract

Financial performance and reporting of company social and environmental expenses were examined. Researchers and businesses throughout the world are increasingly interested in understanding the effect of corporate social and environmental spending on bottom line results. The analysis relied on information from the listed companies' financial statements from 2010 to 2019. Linear regression was used for the analysis in this study. Based on the statistics presented, it appears that CSR reports have a negative effect on the ROI that was originally targeted. Corporate social environmental spending reporting also has a detrimental effect on the mandated return on assets and earnings per share. According to the findings, Nigerian investors are less interested in firms that use their profits to benefit society than they are in those that generate a high return on investment and perhaps offer a sizable dividend. More education and awareness on the topic of corporate social and environmental performance of the firms was recommended in the study rather than focusing on the shareholder group that is more inclined towards the profit motive of the firm. This is because it could change the perspectives of investors to place a high value on firms that consider the needs of all stakeholders, especially the society and environment where they operate.