Nexus between Corporate Social Responsibility and Financial Performance of Non-Financial Firms in Nigeria: The Moderating Role of Corporate Governance

The study examines the moderating role of corporate governance in the relationship between corporate social responsibility (CSR) and financial performance among non-financial firms in Nigeria. Using panel data analysis, the study evaluates the impact of CSR expenditure, board characteristics, and governance interactions on financial performance measured by Return on Assets (ROA). Descriptive statistics and fixed-effect regression models were employed to analyse the dataset. The findings reveal that CSR expenditure has a negligible and statistically insignificant impact on financial performance. Corporate governance variables such as board size, independence, and gender diversity also show no significant direct impact on ROA. However, a marginally significant positive interaction between CSR and board gender diversity suggests that diverse boards may better leverage CSR for financial benefits. Sales growth positively impacts ROA, while cash flow from operations shows a negative and significant effect. The study provides insights into the dynamics of CSR and governance in Nigeria, emphasizing the need for strategic management of CSR and corporate governance mechanisms.