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THE MODERATING EFFECT OF CORPORATE GOVERNANCE ON THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL SERVICES COMPANIES IN NIGERIA

Kabir Tahir Hamid and Mohammed Ibrahim
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Kabir Tahir Hamid: Bayero University, Kano, Postal: Department of Accounting, Faculty of Management Sciences, Nigeria, http://www.icanig.org
Mohammed Ibrahim: Gombe State University, Gombe, Postal: Department of Accounting, Faculty of Arts and Social Sciences, Nigeria, http://www.icanig.org

International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), 2020, vol. 09, issue 1, 69-89

Abstract: This study assessed the extent to which corporate governance shape the relationship between corporate social responsibility (CSR) and financial performance of listed non-financial services companies in Nigeria. The study used ex-post facto research design and secondary data were obtained from the reports of the twenty three (23) sampled listed non-financial services companies from 2008 to 2017. The sample was arrived at using census sampling technique where all the elements were used for the study. The data for the study were analyzed using descriptive statistics, correlation and GLS Fixed Effect with the aid of Stata Version 14.0. Robustness tests such as multicollinearity test, heteroscedasticity test, normality test of residuals, Hausman specification test and F-Test were conducted to validate the results. The result showed the coefficients and t-values for size of the board as (ceff=0.0002, t=0.07), for independence of the board as (ceff=0.02, t=0.43) and for gender diversity of the board as (ceff=0.04, t=0.94), which implied that size of the board, gender diversity of the board and independence of the board all have positive and insignificant moderating effects on the association of CSR and firms' financial performance. This study recommends that SEC should integrate CSR reporting into CG reforms in Nigeria and that management of listed companies in Nigeria should put machinery in place which would address the concerns of stakeholders regarding the environment, ethics, health and safety, as well as, establish committees on CSR activities as a strategic component of the firm's broader CG strategy

Keywords: Corporate Governance; Corporate Social Responsibility; Financial Performance; Moderating; Stakeholder Theory. (search for similar items in EconPapers)
Date: 2020
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International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF) is currently edited by Ijoema Anasa and Ochuko Jeff Odesa

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