e-space
Manchester Metropolitan University's Research Repository

    Financial indicators of corporate social responsibility in Nigeria: a binary choice analysis

    Obi, Pat and Ode-Ichakpa, Inalegwu ORCID logoORCID: https://orcid.org/0000-0003-0283-5119 (2020) Financial indicators of corporate social responsibility in Nigeria: a binary choice analysis. International Journal of Business Governance and Ethics, 14 (1). pp. 34-53. ISSN 1477-9048

    [img]
    Preview
    Accepted Version
    Available under License Creative Commons Attribution No Derivatives.

    Download (889kB) | Preview

    Abstract

    Using multivariate binary choice models, this study investigates the effect of financial indicators on the practice of corporate social responsibility (CSR) in Nigeria. The indicators include return on equity, asset size, and revenue growth. Results of both linear probability and logistic models show that return on equity and asset size increase the likelihood of CSR practice. Sales growth has a negative effect. Compared to other metrics, firms with a large asset investment exhibit the highest likelihood of investing in CSR. Non-parametric tests confirm the positive linkage between CSR and asset size. These findings suggest that large firms, irrespective of their financial conditions, are more likely than other firms to invest in social initiatives. An implication for civil society might be to employ moral suasion to encourage financially strong firms, irrespective of size, to embrace CSR as an important means to boost their public image and long run performance.

    Impact and Reach

    Statistics

    Activity Overview
    6 month trend
    145Downloads
    6 month trend
    295Hits

    Additional statistics for this dataset are available via IRStats2.

    Altmetric

    Repository staff only

    Edit record Edit record