CORPORATE SOCIAL RESPONSIBILITY AND FIRM VALUES IN NIGERIA

Abstract

This research explores the complex correlation between corporate social responsibility (CSR) policies and the financial value of a company, analyzing both immediate and long-term viewpoints. The empirical investigation demonstrates that long-term corporate social responsibility (CSR) has a significant and beneficial effect on the financial worth of a corporation. The coefficient of 0.26 at the 5% level of significance indicates a statistically significant relationship. In contrast, short-term corporate social responsibility (CSR) efforts also have a beneficial impact on the value of a company. Interestingly, the analysis reveals a different pattern, demonstrating that larger firms have a detrimental effect on company value. These results emphasize the significance of implementing a deliberate and consistent strategy for corporate social responsibility (CSR), which has consequences for strategic planning, engaging stakeholders, and maintaining openness. This research enhances the current body of knowledge by delivering detailed insights into the time-related changes and industry-specific consequences of corporate social responsibility (CSR) policies. It also provides helpful suggestions for firms seeking to navigate the intricate realm of sustainable corporate practices. Additional study directions are proposed to enhance our comprehension of the incentives driving corporate social responsibility (CSR) involvement, the ever-changing influence on market performance, and the incorporation of environmental, social, and governance indicators.