Effect of Corporate Social Responsibility Disclosure on the Profitability of Listed Industrial Firm in Nigeria

This study examined the effect of corporate social responsibility on the financial performance of listed industrial firms in Nigeria. The specific objective of the study were to ascertain the effect of corporate social responsibility donation on the profit after tax (PAT), return in equity(ROE) and return on asset (ROA) of listed industrial firms in Nigeria. Ex-post facto research design was utilized in the study and five (5) of listed industrial firms in Nigeria were selected for sample size. Secondary data were obtained and computed from annual report and financial statements of selected firms. E-view was used as statistical tool and descriptive statistic was used to analyse all variables. Inferential statistics conducted were Hausman Test, Fixed Effect and Random to test hypotheses at 5% level of significant. The study found that corporate social responsibility donation has significant and positive effect on the profit after tax of listed industrial firms in Nigeria. Furthermore, it was revealed that corporate social responsibility donation has significant influence on return on asset of listed industrial firms in Nigeria. Finally, the study disclosed that corporate social responsibility donation has made insignificant impact on the return on equity of listed industrial firms in Nigeria. Hence, study concluded that corporate social responsibility has significant effect on the financial performance of listed industrial firms in Nigeria. Therefore, the study recommended that companies should have excellent debt management systems in industrial firms in Nigeria should make effort to increase their commitment to social responsibility activities such as community projects and environmental protection in order to attract enhanced customer loyalty thereby enhancing the firm return of equity.