Social Accounting Disclosure and Organizational Performance: Evidence from Manufacturing Companies in Nigeria

Abstract

This research investigated the effect of social responsibility disclosure on organizational performance. The study utilized secondary data which were collected from the yearly accounts and reports of ten listed manufacturing firms in Nigeria. The explained variable is performance, and it is represented by return on equity, while the independent variables are three items from the social responsibility disclosure, a subcategory of social disclosure. These items are local communities’ responsibility disclosure, corruption disclosure, and publicity policy disclosure. Pooled ordinary least square (OLS) model was utilized in analyzing the hypotheses of the study. Meanwhile, fixed and random effect models were used as a robustness check for the results obtained from the Pooled OLS. The study revealed that local communities’ responsibility disclosure and publicity policy disclosure are positively related with performance, while corruption disclosure and performance are negatively related. In the light of this, it is suggested that companies should be consistent in their implementation of corporate social responsibility disclosure, even if there is no effect on the firm’s performance now. This is necessary since it will have a positive effect in the long run.

Received: 16 August 2024 | Revised: 29 October 2024 | Accepted: 10 November 2024

Conflicts of Interest 

The authors declare that they have no conflicts of interest to this work.

Data Availability Statement

The data that support this work are available upon reasonable request to the corresponding author.

Author Contribution Statement

Adedayo Oluyemi Ajibare: Conceptualization, Methodology, Investigation, Software, Resources, Data curation, Writing – original draft, Writing – review & editing, Visualization, Funding acquisition. Khadijah Adeola Idowu: Validation, Formal analysis, Supervision, Project administration, Visualization. Ayodele Abraham Ojo-Agbodu: Validation, Formal analysis, Supervision, Project administration, Visualization.