MODERATING EFFECT OF FIRM SIZE ON THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND FINANCIAL REPORTING QUALITY OF LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

The disclosure of corporate social responsibility activities has gained significant attention as a means for organizations to demonstrate their commitment to ethical business practices. In view of this, this study examined the moderating effect of firm size on the relationship between corporate social responsibility disclosure and financial reporting quality of listed manufacturing firms in Nigeria. However, the specific objectives were to ascertain the moderating effect of firm size on the relationship between environmental responsibility disclosure and financial reporting quality of listed manufacturing firms in Nigeria, to examine the moderating effect of firm size on the relationship between social responsibility disclosure and financial reporting quality of listed manufacturing firms in Nigeria, and to examine the moderating effect of firm size on the relationship between economic responsibility disclosure and financial reporting quality of listed manufacturing firms in Nigeria. Ex-postfactoresearchdesignwasadopted,andthestudyfocusedonmanufacturing firms listed on the Nigerian Exchange Group, specifically 12 out of 13 firms that were continuously listed for a period of 10 years (2014-2023). The data collected were analyzed using descriptive statistics and multiple linear regression analysis via E-views 10.0 statistical package. The study findings revealed that firm size has no significant effect on the relationship between environmental responsibility disclosure (Coeff. = -0.000124{0.2983}) and financial reporting quality of listed manufacturing firms in Nigeria while firm size has significant effect on the relationship between social responsibility disclosure (Coeff. = - 0.000569{0.0469}) and financial reporting quality of listed manufacturing firms in Nigeria. it also revealed that firm size has significant effect on the relationship between economic responsibility disclosure (Coeff. = 3.381225{0.0346}) and financial reporting quality of listed manufacturing firms in Nigeria. it was thus concluded that firm size plays a significant role in shaping the relationship between social responsibility disclosure and economic responsibility disclosure with financial reporting quality. The study recommended, amongst others, that companies should focus on growth in other to exhibit their social and economic responsibility for the improvement of their environment.

KEYWORDS: Firm size, environmental, social and economic responsibilities.