ISSN: 2225-8329
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This paper ascertained the relationship between social responsibility cost (SRC) and financial performance of manufacturing companies listed on Nigeria stock exchange. The study employed a panel research design with a sample of three manufacturing companies in Nigeria namely: Nigeria Breweries Plc, Dangote Cement Plc and Floor Mills Nigeria. Secondary data sources were utilized for the study using the firms’ annual report. Social responsibility cost was proxied with the companies’ voluntary donations to the society while profit after tax and return on assets where used as measures of financial performance. Breusch-Pagan LM and Pesaran scaled LM cross-sectional dependency test and Jarque-BeraTest of normality were the diagnostic tests employed to certify the suitability of the data for panel regression. Pooled Panel Least Squares regression of used as the method of data analysis using Eviews 9. The study found that social responsibility cost has neutral effect on profit after tax and return on assets after controlling for firms’ size.
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To cite this article: Ofurum, C. N., Ogunyemi, O. J., Amobi, B. N., Okonya, B. E. (2019). Social Responsibility Costs and Financial Performance in Manufacturing Companies in Nigeria: A Panel Research Design, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (4): 118-125
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