EFFECTS OF CORPORATE SOCIAL RESPONSIBILITY ON THE PRICE TO SALES RATIO OF FIRMS IN NIGERIA

Chibueze Charles Mbaeri, Kevin Okoh Ugwu (PhD), Uchechukwu Daniel Abada (PhD)

Abstract


This study aimed to assess the responsiveness of firms’ market value to corporate social responsibility of consumer goods firms in Nigeria. Specifically it sought to evaluate the effect of corporate social responsibility on the price to sales ratio of consumer goods firms. The theoretical frameworks adopted for the study was stakeholders theory and employed simple linear regression using panel data analysis to assess the responsiveness of firms’ market value to CSR of consumer good firms for the period 2008-2017. The findings showed that corporate social responsibility has significant and positive effect on price to sales ratio of the sampled consumer goods firms in Nigeria. Based on the findings among others, it was recommended that Government should establish standard CSR policies and also enforce laws on firms that fail to adhere to its implementation.

Keywords


Corporate Social Responsibility, price to sales ratio, consumer goods firms.

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