EFFECT COMMUNITY DEVELOPMENT COST ON THE FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

Environment plays an important role for organization to achieve its goal. This study therefore examined effect of community development cost on financial performance of listed consumer goods firms in Nigeria. The ex-po facto research design was adopted. The secondary data from annual report of listed consumer goods firms was used. The purposive sampling techniques was employed in selecting the sixteen (16) firms out of twenty one (21) consumer goods firms in Nigeria for 2013-2022financial year. Panel regression technique was used to analyze the data with the help of E-views 12. The result showed that waste management cost and environmental remediation cost have negative effect on return on capital employed of listed consumer goods firms in Nigeria. This study concluded that waste management cost and environmental remediation cost have negative and insignificant effect on return on capital employed of listed consumer goods firms in Nigeria. Based on the finding, the study recommends that management of listed consumer goods firms in Nigeria should have positive disposition towards community development cost and also disclose more of these information in their annual report.