Corporate social responsibility practices and profitability of the listed agricultural companies on the Nigerian stock exchange
Author(s): Awoseyila Folorunso
Abstract: This study focused on the companies in the agricultural sector of the Nigeria stock exchange. Corporate social responsibility practices among the companies were measured and the effect on profitability was evaluated. The general linear model (GLM) multivariate was used as a procedure to model the values of multiple dependent scale variables, based on their relationships to categorical and scale predictors. The two dependent variables are earning per share (EPS) and return on equity (ROE). Corporate social responsibility (CSR) is the major variable and size (SIZE) and age (AGE) of companies are the control variables. Findings revealed that there is no significant effect of CSR on EPS and ROE. There is no significant effect of SIZE of companies on EPS and ROE. Lastly, there is no significant effect of AGE of companies on EPS and ROE. This implies that the agricultural companies cost on CSR does not affect profitability and so, the companies are at the advantage of increase in CSR and legitimate their continued existence in the host community they operate. It is recommended that CSR has no option in mitigating the degrading effects of the agricultural activities on the environment.
Awoseyila Folorunso. Corporate social responsibility practices and profitability of the listed agricultural companies on the Nigerian stock exchange. Int J Adv Acad Stud 2021;3(3):269-274. DOI: 10.33545/27068919.2021.v3.i3d.620
Research Journals