Effect Of Corporate Social Responsibility and Corporate Governance on Performance of Manufacturing Firms in Nigeria

This paper seeks to ascertain the intervening role of corporate social responsibility CSR on the relationship between corporate governance CG and performance of manufacturing companies in Nigeria. This investigation also assesses the influence of corporate governance CG on both financial and nonfinancial performance of Nigerian manufacturing companies. In order to substantiate the hypothesised relationships, we employ agency theory (AT) and shareholder theory (ST). The research design is a cross-sectional and the random sampling approach was adopted. The 280 usable responses from questionnaires obtained were quantitatively analysed. The partial least squares structural equation modelling (PLS-ESM) by means of Smart-PLS 3.3.9 was used to analysed the data. The key findings indicate that CG not only influences CSR but also significantly associated with both financial and nonfinancial performance. In addition, CSR mediates the relationship between CG and financial performance and non-financial performance. The results of the study suggest that the role of CSR in the tested model is justified by the connection between AT and ST. This theoretical contribution is provided by the study. Some recommendations with practical implications for managerial practice were suggested. The study is restricted by its contextual perspective on Nigeria. Future study can espouse longitudinal approach to expand the fronter of knowledge.