Effect of Ownership Structure on Corporate Social Responsibility of Consumer Goods Firms in Nigeria

Abstract

This study examines the effect of ownership structure on corporate social responsibility of consumer goods firms in Nigeria, covering 2012-2021. The population of this study consists of all the twenty-one (21) quoted consumer goods firms in Nigeria while seventeen (17) firms were sampled. The hypotheses were tested using a random effect regression model after conducting some diagnostic tests. The results showed that managerial ownership has a significant positive effect on corporate social responsibility of consumer goods firms in Nigeria. However, institutional ownership has a significant negative effect on corporate social responsibility of consumer goods firms while ownership concentration has an insignificant negative effect on corporate social responsibility of consumer goods firms in Nigeria. The study concludes that the holding of a good percentage of shares by the companies' directors will make them to be more committed and diligent in running the affairs of the companies which will, in turn, increase the amount spent on corporate social responsibility in Nigeria. The study recommends that the consumer goods firms in Nigeria should make sure that their directors hold at least 15-20 per cent of shares in their firms to make them more committed and increase the amount to be spent on corporate social responsibility in their firms. The study also recommends that the consumer goods firms in Nigeria should ensure that institutional investors hold at least 20-25 per cent of shares in their firms to increase the amount to be spent on corporate social responsibility in their firms.