THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON MARKET VALUE OF QUOTED CONGLOMERATES IN NIGERIA
THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON MARKET VALUE OF QUOTED CONGLOMERATES IN NIGERIA
No Thumbnail Available
Date
2009-04
Authors
VICTOR, CHIEDU OBA
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The purpose of this study is to investigate the causal relation between
corporate social responsibility and market value. This study uses a multiple
regression model for the purpose of explaining the impact of corporate social
responsibility on market value of quoted conglomerates in Nigeria for the period
2001 to 2006. The model employs Community Social Responsibility, Human
Resource Management, Charitable Contribution and firm size as explanatory
variables in order to predict market value as represented by Tobin’s Equity Q.
The study reveals that the explanatory variables have significant aggregate
impact on market value. This result offers evidence on the utility of the model in
explaining the CSR – market value relationship in quoted conglomerates in
Nigeria. The study establishes an insignificant relationship between community
social responsibility, Human resource management and market value. On the
other hand, charitable contributions have been found to have a negative impact
on market value of quoted conglomerates while firm size has been found to play
a significant role in the CSR-market value relationship. On the basis of the
findings of the study it has been recommended that businesses carry out social
responsibilities reflective of their corporate size and capability. Finally, the
study recognizes the limitation of the model of this study in providing an
understanding of whether or not socially responsible firms outperform the
socially reprehensible ones and precisely how much a firm should spend on
CSR. It therefore calls for caution in the extrapolation of the findings of the
study and encourages further research on the possible CSR- Financial
performance relationship in Nigeria.
Description
BEING A THESIS SUBMITTED TO THE POST GRADUATE
SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA, IN PARTIAL
FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
MASTER OF SCIENCE IN ACCOUNTING AND FINANCE
APRIL, 2009
Keywords
CORPORATE,, SOCIAL,, RESPONSIBILITY,, QUOTED CONGLOMERATES,, NIGERIA