JEFMS Journal

ABSTRACT:

This study examines the effect of community involvement activities on the financial performance of food and beverage companies in Nigeria. The specific objectives are to determine the relationship between corporate social responsibility and return on capital employed, and to determine the relationship between corporate social responsibility and earnings per share. The study made use of the quantitative research method. The sample of the study comprises seventeen (17) food and beverage companies listed on the Nigerian Stock Exchange market. Quantitative Data analysis was analyzed using the Stata. The cоеfficiеnt of determination, R squаrеd, mеаsurе was put to test the significance of the regression model in explaining the relationship between corporate social responsibility practices reported in the аnnuаl reports and the financial performance. The findings of the study revealed community involvement has a positive but insignificant relationship with return on capital employed and also has a positive insignificant relationship with earnings per share in food and beverage companies in Nigeria. Consequent to this study, it was recommended among others that food and beverage companies should endeavor to improve on their corporate social responsibility disclosures especially the ones with relatively low levels of disclosures.

KEYWORDS:

Community involvement, Corporate social responsibility, Financial Performance, Food and beverage companies.

REFERENCES:

1) Akinlo, O. O. & Iredele, O. O. (2014). Corporate environmental disclosures and market value of quoted companies in Nigeria. Business and Management Review, 5(3), 171-184.

2) Daferighe, E. E, Akpanuko, E. E. & Offiong, P. E. (2019). Social Accounting Practices and Profitability of Companies in Nigeria. Archives of Business Research, 7(5), 233-246.

3) Gitahi, J., Nasieku, T. & Memba, F. (2018). Corporate social responsibility disclosure and the value relevance of annual reports for listed banks in Kenya. European Scientific Journal, 14(4), 329.

4) Kalai, L. & Sbais, Y. (2019). The impact of corporate social responsibility disclosure in terms of quantity and quality on the financial performance of companies in Tunisia. International Review of Management and Marketing, 9(3), 9-18.

5) Kurawa, J.M. & Saidu, H. (2018). Corporate tax and financial performance of listed Nigerian consumer goods. Journal of Accounting and Financial Management, 4(4).

6) Mansaray, A. P., Yuanyuan, L & Brima, S. The impact of corporate social responsibility disclosure on the financial performance of firms in Africa. International Journal of Economics and Financial Issues, 7(5), 137-146.

7) Nguyen, B. N. (2018). The effect of corporate social responsibility disclosure on financial performance: Evidence from credit institutions in Vietnam. Asian Social Science, 14(4). Published by Canadian Center of Science and Education.

8) Ofoegbu, G. N., Odoemelam, N. & Okafor, R. G. (2018). Corporate board characteristics and environmental disclosure quantity: Evidence from South Africa (integrated reporting) and Nigeria (traditional reporting). Cogent Business Review, 5(1), 1-27.

9) Okpala, O. P (2019). An exploratory study of the level of social and environmental disclosures by listed firms in Nigeria. Acta Universitatis Danubius. Economica, Danibus University of Galati, 15(2), 160-172.

10) Okpala, O. P. & Iredele, O. O. (2019). Corporate social and environmental disclosures and market value of listed firms in Nigeria. Copernican Journal of Finance & Accounting, 7(3), 90-8. Retrieved from http://dx.doi.org/10.12775/CJFA.2018.013

11) Gray, R. (2000). Current developments and trends in social and environmental auditing, reporting and attestation: A review and comment. International Journal of Auditing, 4, 247-268.

12) Saud, M. A., Rohalia, B. Y. & Azam, A. H. K. (2019). The relationship between corporate social responsibility disclosure and financial performance in the Iraqi companies: Literature review. International Journal of English, Literature and Social Science (IJELS), 4(6), 1836-1841.

13) Uwuigbe, U. (2011). An examination of the relationship between management ownership and corporate social responsibility disclosure: A Study of Selected Firms in Nigeria. Research Journal of Finance and Accounting, 2(6), 23–29.

14) Yahaya, O. A (2018). Environmental reporting practices and financial performance of listed environmentally-sensitive firms in Nigeria. Savanna: A Journal of Environmental and Social Sciences, 24(2), 403-412.

15) Babalola, Y. A. (2013). An impact of social audits on corporate performance: analyses of Nigerian manufacturing firms. Research Journal of Finance and Accounting, 4(3), 96-101.

16) Manescu, C. & Starica, C. (2008). The relevance of corporate social responsibility criteria to explaining firm profitability: A case study of the publishers of the Dow Jones Sustainability Indexes1. Retrieved from http://www.economia.uniroma 2.it/conference/Public/1/Paper/71.pdf