Value Relevance of Corporate Social Responsibility Disclosures among listed food manufacturing companies in Nigeria
Abstract
This study examined the value relevance of corporate social responsibility disclosures of listed food manufacturing companies in the Nigerian consumer goods sector. It specifically investigated how the share prices of listed food manufacturing companies respond to publications on each of the four components of corporate social responsibility disclosures as required by the GRI framework. The social contract theory anchored the basis for this study. Census sampling technique was utilized for this study because all of the 9 listed food manufacturing companies in the consumer goods sector were observed. The annual reports, sustainability reports and NSE website for the ten-year period covering 2011-2020 were content analysed for data on CSR and market price of share respecitively. The hypotheses formulated were tested using multiple linear regression analysis. The study reveals that CSR disclosures are value relevant, however, human resources responsibility disclosures (the most disclosed component) has the least impact on the share prices, while in descending order of significance environmental responsibility disclosures (the least disclosed), community responsibility disclosure and customers and products responsibility disclosures have the most significant impact on the share prices of listed firms in the Nigerian food industry. In view of the significance of CSR disclosures on the market share prices of food manufacturing companies listed on the Nigeria stock exchange, it is recommended that higher environmental, community and product/consumer responsibility disclosure compliance is required by listed companies in order to enhance positive share price responses in the capital market.
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