CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE OF LISTED PHARMACEUTICAL COMPANIES IN NIGERIA

Abstract

This study established the effect of corporate social responsibility on firm value of listed pharmaceutical companies in Nigeria. Specifically, the objectives of the study were to examine the significant relationship between gifts and donations, provisions for social amenities, employee management and dividend payout on the firm value of the pharmaceutical firms in Nigeria, the study adopted expo-factor research design. Secondary data was used as a sources of data collection from the CBN statistical bulletin Statistical Package for Social Sciences (SPSS, v. 25) was used in quantitative data analysis in this study. Simple random sampling was used in selecting the respondents on random. The findings from the study revealed that gifts and donations and employee benefit have a positive and significant effect on return on asset of listed pharmaceutical companies in Nigeria. While social amenities and dividend payout do not have a positive and significant effect on return on asset of listed pharmaceutical companies in Nigeria. Based on the findings, the study thus recommended that; Management of firms should use wellestablished mechanism of gifts and donations that contributes to an improvement in firm value. Firms should fulfill their social responsibilities then it will improve the society, environmental conditions and overall economy of Nigeria which leads to create positive image of firms and all other stakeholders’regarding the organizations. Also, Management of firms should invest on social amenities in their host community in order to ensure peaceful coexistence, enhance sustainable communities and improve the livelihood of the host community. In addition, the firms operating in Nigeria should focus more on employee management as part of CSR as it helps gain a better corporate image within the community, and that firm value would improve over time as a result of spending more on employee management. The firms operating in Nigeria should focus more on dividend payout as part of CSR as it helps gain a better corporate image within the community, and that firm value would improve over time as a result of spending more on dividend payout