EFFECT OF CORPORATE SOCIAL RESPONSIBILITY REPORTING VOLUME ON VALUE RELEVANCE OF QUOTED FIRMS FINANCIAL REPORT IN NIGERIA

NWAORGU, INNOCENT AUGUSTINE
Michael Okpara University of Agriculture Umudike, Nigeria
ianwaorgu@yahoo.com
IORMBAGAH, JACOB AONDOHEMBA
Michael Okpara University of Agriculture Umudike, Nigeria
jiormbagah1@gmail.com

ABSTRACT
This study examines the effect of corporate social responsibility reporting volume on value relevance of quoted firms’ financial report in Nigeria. This study is based on ex-post facto research design and employed a panel data set collected from seventy three (73) non-financial companies over a six year period ranging from 2012 to 2017 financial year. We analyzed the data set using Summary Statistics, Correlation Matrix and Panel Random Least Square Regression Technique. The random effect model established that corporate social responsibility reporting page volume has an indirect effect on share price. This finding suggests that managers do modify earnings per share and book value per share with social responsibility activities. The findings from this study supports the argument that corporations in Nigeria pay more attention to how much profits are generated and how much dividends are paid, and not necessary social issues and its reporting. Hence one among the various recommendations that we proffer is that the notion of implementing corporate social responsibility activities as a complementary service must be discouraged. In so doing firms must report corporate social responsibility activities that aim not only to comply with rules but also such that will create good reputation for the public and investors as it affects the value relevance of firms’ financial report.
Keywords: Corporate social responsibility reporting length, share price, earnings per share and book
value of shares.

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