Impact of Firm Level Characteristics on CSR Disclosure of Listed Industrial Goods Companies in Nigeria

This study examines the effect of firm level characteristics on CSR disclosure of listed industrial goods companies in Nigeria. The study adopted ex-post facto research design and gathered secondary data from published annual reports of the listed industrial goods companies in Nigeria covering the period of 10 years (2013-2022). The population of the study is 13 listed industrial goods companies in Nigeria where the entire population was considered as the sample using census-sampling technique. The data gathered were analysed using descriptive and inferential statistics including correlation and multiple regression analysis with the help of STATA 14.0. The study found that firm size has significant positive influence on CSR disclosure; financial leverage has negative and significant effect on CSR disclosure, while liquidity was insignificantly related. In view of the findings, this study concludes among others that larger industrial companies in Nigeria are exhibiting a greater capacity and willingness to engage in CSR initiatives due to resource availability and reputation management while the financial constraints or priorities make the companies with higher leverage allocate fewer resources to communicating their CSR. Accordingly, this study recommends industrial goods companies to strengthen their CSR mechanisms by implementing robust techniques for collecting and reporting CSR data. This can be done by ensuring the data reported on CSR is accurate, comprehensive and align with industry standard. Also, the companies need to continuously compare their CSR practices against industry standards and benchmark, as well as comparison with companies in other sectors.