Authors: Mohammed Baba Tukur, Saidu Adamu, Aliyu Sa'ad, Bashir Aminu Mohammed
Abstract
This study examined the impact of Corporate Social Responsibility on financial performance of Listed Construction Companies in Nigeria over the period 2012-2023. The population of the study covers all the seven Listed Construction Companies in Nigeria. The study made use of both primary and secondary data generated from the Questionnaire and Annual Reports of the Listed Construction Companies in Nigeria under study. A Panel multiple regression technique was employed. Therefore, OLS, fixed effect and random effect were applied to estimate the model. The regression result for Fixed Effect Estimation Model (FEM), reveals that Health as proxy to Corporate Social Responsibility had a positive and significant impact on Financial Performance. Infrastructure as a proxy for Corporate Social Responsibility had a negative and significant impact on Financial Performance. Finally, Education as a proxy for Corporate Social Responsibility had a positive and insignificant impact on Financial Performance. The study however concluded that, Infrastructure did not play positive impact in maximizing the financial performance of the listed construction in Nigeria under study, the result shows negative relationship with financial performance via the measurement employed in the study. However, the management of listed construction companies in Nigeria should re-strategies to continually manage Infrastructure in order to have high financial performance, which can be greatly relied upon by the companies’ potential investors. The management of construction companies should look at other Corporate Social attributes like the provision of Source of water, environmental Sanitation, sports, skills acquisition, and many more Corporate Social issues that will enhance confidence in the companies among the stakeholders and community members so as to improve their financial performance.
Keywords: Corporate social responsibility, financial performance, construction companies, Nigeria