MEDIATING EFFECT OF FIRM SIZE ON CORPORATE SOCIAL RESPONSIBILITY COST AND FINANCIAL PERFORMANCE OF LISTED NON FINANCIAL COMPANIES IN NIGERIA

Arzizeh Tiesieh Tapang 1* , Ashishie Peter Uklala 2
1* Department of Accounting, College of Management Sciences,
Michael Okpara University of Agriculture Umudike, P.M.B. 7267 Umuahia,
Abia State – Nigeria. Tel: +234 (0) 8032737920; E-mail: arzizeh@gmail.com
ORCID: 0000-0001-5709-0770
2 Department of Accounting, Faculty of Management Sciences, University of Calabar,
P.M.B. 1115 Calabar, Cross River State – Nigeria
Tel: +234 (0) 7089843220; E-mail: peterashishie@yahoo.com

This study examined the mediating effect of firm size on the relationship between corporate
social responsibility cost and financial performance of listed non financial companies in
Nigeria. The content analysis approach was adopted and data collected from secondary sources.
The collected data were analysed using the ordinary least square techniques. The results
revealed that companies with higher or equal to the median value expend more on corporate
social responsibility while companies with the value below the median expend less on
corporate social responsibility. The study also revealed that there is a positive and significant
relationship between corporate social responsibility cost and return on equity. It further
revealed that there is a positive and significant relationship between corporate social
responsibility cost and firm size. Also, the results showed that there is a positive and significant
relationship between firm size and return on equity. Finally, the results from the analysis
showed that firm size partially mediates the relationship between corporate social responsibility
cost and return on equity. The study concludes that large companies are investing more on
corporate social responsibility than smaller companies. The study recommended that for
corporate companies in Nigeria to improve their image/reputation they should engage in CSR
operations in all its aspects, thereby growing their returns. Corporate companies should spend
fair sums of their profits on social donation which in essence would result in a rise in their
earnings.
Keywords: Corporate social responsibility, Corporate social responsibility cost, Financial
performance, Firm size, Mediating effect, Return on equity

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