DOROTHY Aje Patrick Edem1
, TERZUNGWE Nyor2,
, NMA Mohammed Ahmed3
and SAMUEL Eniola Agbi4
Department of Accounting, Faculty of Management Sciences,
Nigerian Defence Academy, Kaduna
Email: dorothyedem@gmail.com
ABSTRACT
Firm value is paramount to the survival and growth of business firms, especially those operating in the
consumer goods sector. Unfortunately, there are firms in this sector with diminished value which also
negatively reflects their overall status. Firm value can be enhanced via deliberate strategies such as
investing in corporate social responsibility (CSR) activities as well as adequate environmental disclosure.
Hence, this study examined the effect of corporate social responsibility expenditure (CSRX) alongside
environmental disclosure (ENVD) on the value of listed consumer goods firms in Nigeria from 2006 to
2022, moderated by executive compensation (EXCOM). The population for the study consisted of 21
firms while 16 firms were selected as sample using purposive sampling technique. Stakeholder theory
was used to underpin the study, bearing upon the perspective that multiple stakeholders with divergent
needs should be considered by firms in order to gain favourable perception and image via CSR
undertakings and environmental disclosure. Multiple regression and moderated regression were used for
analysis and test of hypotheses in this study. From the results of this research, it was evident that the
effect of both CSRX and ENVD on firm value were significant and positive. In addition, EXCOM
strengthens the effects of CSRX and ENVD on firm value. The study therefore recommends that firms
should be more deliberate towards CSR expenditure and environmental disclosure to optimise value.
Moreover, suitable compensation structures that will serve as incentives to the executives should be
reinforced by firms, since this improves firms’ CSR Strategies.
Keywords: Corporate social responsibility expenditure, Environmental disclosure, Firm value,
Stakeholder theory, Price to book value and Executive compensation.