THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE (CSRD) ON THE FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA.

Abstract

This paper assesses how listed manufacturing companies in Nigeria fare financially as a result of corporate social responsibility disclosure (CSRD). With regard to the sampled enterprises, the article specifically looked at how the four CSRD dimensions—human resources, environment, community, and product—affect EPS.. Ten (10) manufacturing enterprises were randomly selected from seven (7) subsectors within the Nigerian manufacturing industry to participate in the study. Secondary data for the study were collected from the financial statements of the sampled firms and analyzed with the aid of multiple regression analysis. The results of the study show a statistically significant positive correlation between EPS and CSRD. Additionally, the research indicates that every one of the four CSRD dimensions—that is, employee, environment, community, and product—significantly improves the EPS.. This implies that the EPS will increase in proportion to the CSRD level. Therefore, the study suggests that management of Nigerian listed manufacturing companies should have a more positive perspective when it comes to CSR and CSRD concerns, viewing them as investments rather than liabilities. The study concludes by recommending that, given the advantages of corporate social responsibility (CSRD) for the government, listed manufacturing businesses, and their stakeholders, the Financial Reporting Council of Nigeria (FRCN) mandate social and environmental reporting in the financial statements of the corporations.