ABSTRACT

 Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders. The relationship between CSR and firm performance is a complex and controversial one. Some studies have found a positive correlation between the two, while others have found negative correlation. However, there is a growing evidence to suggest that CSR can have a positive impact on firm performance, both in the short and long term. This study aims to add to knowledge by investigating the relationship between CSR and firm performance in Nigeria listed insurance companies. The study employed the ex-post facto research design. The panel data regression method was used to analyze the data from a sample of Nigeria listed insurance companies over a period of five years (2018-2022). The study used varieties of financial indicators, such as return on asset (ROA), return on equity (ROE), earnings per share (EPS) as measures of firm performance. The result revealed that corporate social responsibility has a positive significant relationship with return on assets (ROA), this means that CSR has a significant impact on financial performance because CSR generate additional revenue. Also, the effect of CSR on ROE is positive and statistically significant. This suggests that firms that engage in more CSR activities tend to have higher ROE. The result further revealed a positive significant relationship between corporate social responsibility and earnings per share (EPS). This means that the coefficient for LNCSR is positive and statistically significant, indicating that larger firms tend to have higher earnings per share.

The study recommends among others that corporate social responsibility can lead to higher earnings per share (EPS) through a number of channels, for example, CSR can help firms to improve their brand reputation, attract and retain customers, reduce costs. CSR can lead to improved employee productivity and morale, which can also boost earnings.