Firm Attributes in the Dynamic Effect of Corporate Social Responsibility on Financial Performance of Manufacturing Firms

This study investigates the moderating role of firm attributes (size, age, and leverage) in the dynamic impact of corporate social responsibility (CSR) on the financial performance of manufacturing firms. The study is grounded in legitimacy and resource-based view theories and uses descriptive, inferential, and econometric methods to analyze data from listed manufacturing firms in Nigeria from 2010 to 2023. Results indicate that CSR did not significantly impact financial performance until 2 to 4 years later, suggesting that CSR activities do not have an immediate financial effect on firms. Additionally, only firm size was identified as a crucial factor that positively influences financial performance. However, results from the lead-lag interaction model suggest caution against excessively increasing firm size, as unnecessary asset acquisition could negatively impact long-term financial outcomes, potentially affecting CSR activities. These findings have important implications for aligning CSR efforts with firm size to achieve favourable future financial results.