Author(s): Arzizeh Tiesieh Tapang, Ashishie Peter Uklala, Bassey Eyo Bassey, Charity Nkeiru Ezuwore-Obodoekwe, Edith Ogoegbunam Onyeanu, Amara Priscilia Ozoji, Ijeoma P. Ojiakor, Samuel M. Takon, Edim Ndifon Obim, Ekpenyong B. Obo
This study examined the mediating effect of firm size on the relationship between corporate social responsibility cost and financial performance of listed non-financial companies in Nigeria. The content analysis approach was adopted and data collected from secondary sources. The collected data were analyzed using the ordinary least square techniques. The results revealed that companies with higher or equal to the median value expend more on corporate social responsibility while companies with the value below the median expend less on corporate social responsibility. The study also revealed that there is a positive and significant relationship between corporate social responsibility cost and return on equity. It further revealed that there is a positive and significant relationship between corporate social responsibility cost and firm size. Also, the results showed that there is a positive and significant relationship between firm size and return on equity. Finally, the results from the analysis showed that firm size partially mediates the relationship between corporate social responsibility cost and return on equity. The study concludes that large companies are investing more on corporate social responsibility than smaller companies. The study recommended that for corporate companies in Nigeria to improve their image/reputation they should engage in CSR operations in all its aspects, thereby growing their returns. Corporate companies should spend fair sums of their profits on social donation which in essence would result in a rise in their earnings.