Corporate Social Responsibility and Investment Decisions in Listed Manufacturing Firms in Nigeria

Corporate social responsibility (CSR) is an inexorably critical issue for economic agents everywhere throughout the world, due to regularly developing attention to all the aspects of firm’s activities and their relationships with stakeholders. Likewise in rising economies like Nigeria, the quantity of firms that take part in intentional corporate social responsibility (CSR) reports (e.g. supportability reports, natural reports, ecological and social reports or corporate social duty reports) is expanding. The purpose of this paper is to investigate the impact of Corporate Social Responsibility on investment decisions in listed manufacturing firms in Nigeria. The study employed a panel methodology, and the results show a positive and significant relationship between CSR and investment decisions of stakeholders in manufacturing firms in Nigeria. Overall, these results suggest that improved CSR investment benefits shareholders which would promote positive performance in investment level in the firm and also improved firm performance. The study recommends that CSR activities should be connected to the corporate processes of value creation, i.e., CSR is exclusively designed as an instrument for improved performance.