Effect of Corporate Social Responsibility on Corporate Governance and Performance of Consumer Goods Firms in Nigeria

ResearchProblem: Despite extensive studies on corporate governance and firm performance, empirical findings remain inconsistent, particularly in emerging economies. In Nigeria’s consumer goods sector, it is unclear whether corporate governance mechanisms directly enhance financial performance or whether corporate social responsibility (CSR) strengthens this relationship. The absence of clarity on CSR’s moderating role constitutes a significant gap in governance-performance literature. Methods/Theory: This study adopts an ex-post facto research design using panel data from 10 listed consumer goods firms in Nigeria covering the period 2018–2024. Data were obtained from annual reports and analyzed using descriptive statistics, correlation analysis, and panel regression techniques (OLS, Fixed Effects, and Random Effects models). The study is theoretically anchored on Agency Theory, extending its application by integrating CSR as a governance-enhancing mechanism that mitigates agency conflicts and strengthens performance outcomes. Return on Equity (ROE) was used as the proxy for firm performance, while board size, board meetings, and board gender diversity represented corporate governance variables. Results: The findings reveal that corporate governance mechanismsboard size, board meetings, and board gender diversitydo not exert a statistically significant direct effect on firm performance. However, CSR demonstrates a strong and positive significant impact on financial performance. Furthermore, the interaction results indicate that CSR significantly moderates the relationship between governance variables and firm performance, strengthening governance effectiveness in enhancing financial outcomes.