THE EFFECT OF CORPERATE GOVERNANCE AND CORPERATE SOCIAL RESPONSIBILITY ON FIRM PERFORMANCE
Abstract
The study examines the effect of corporate governance and corporate social responsibility on quoted companies in Nigeria. The aim of the study was to investigate if corporate governance and corporate social responsibility significantly impact on firm performance in quoted companies in Nigeria. The study utilized the panel data research design. A sampled of twenty five (25) companies quoted in the Nigerian Stock Exchange was utilized spanning from the period of 2010 to 2014. The Panel Least Square regression technique was used to show the relationship between the variables and from the findings, it is observed that there is a positive and significant relationship between board independence and firm performance in Nigeria. Also, there is a positive significant relationship between board size and firm performance in Nigeria. Furthermore, there is a positive and significant relationship between donation on charitable causes and firm performance in Nigeria and finally, expenditure on educational development has a positive significant effectwith firm performance in Nigeria. The study recommends that corporate governance and corporate social responsibility variables should be given utmost attention as this will increase firm performance in quoted companies.
TABLE OF CONTENT
CHAPTER ONE        
INTRODUCTION
1.1    BACKGROUND TO THE STUDY    -    -    -    -    -
1.2    STATEMENT OF THE RESEARCH PROBLEM    -    -    -           -
1.3    OBJECTIVES TO THE STUDY    -    -    -    -    -    
1.4    HYPOTHESIS OF THE STUDY    -    -    -    -    -    
1.5    SIGNIFICANCE AND RELEVANCE OF THE STUDY    -    -    
1.6     SCOPE OF THE STUDY    -    -    -    -    -    
1.7        LIMITATION TO STUDY-      -    -    -    -    -    
              REFERENCES                   -           -           -          -           -           
CHAPTER TWO
LITERATURE REVIEW
2.1     INTRODUCTION    -    -    -    -    -    -    -
2.2    CONCE1NPTUAL FRAMEWORK    -    -    -    -    -
2.2.1    CORPORATE GOVERNANCE    -    -    -    -    -    
2.2.2    CORPORATE SOCIAL RESPONSIBILITY-    -    -    -    
2.2.3    FIRM PERFORMANCE    -           -          -          -           -            -           
2.3    EMPIRICAL REVIEW    -           -         -           -           -            
2.3.1    BOARD SIZE AND FIRM PERFORMANCE     -           -            -          
2.3.2    BORAD INDEPENDENCE AND FIRM PERFORMANCE    -    
2.3.3    AUDIT COMMITTEE SIZE AND FIRM PERFORMANCE    -
2.3.4    CORPORATE SOCIAL RESPONSIBILITY AND FIRM PERFORMANCE
2.4     THEORETICAL FRAMEWORK   -          -           -         -               -    
2.4.1     AGENCY THEORY         -               -          -           -         -           -          
2.4.2     UTILITARIAN THEORY                -    -           -         -           -          
2.4.3     MANAGERIAL THEORY              -          -          -          -          -           
2.4.4     LEGITIMACY THEORY              -          -          -          -           -            
               REFERENCES               -                -          -          -          -           -          
CHAPTER THREE
 METHODOLOGY
3.1     INTRODUCTION    -    -    -    -    -    -    -
3.2    RESEARCH DESIGN    -    -    -    -    -
3.3       POPULATION AND SAMPLING    -    -    -    -    -    
3.4    SOURCES OF DATA    -    -    -    -    -    -
3.5       METHOD OF DATA ANALYSIS-      -    -    -    -    
3.6    MODEL SPECIFICATION    -    -    -    -    
3.7    OPERATIONALIZATION OF VARIABLES    -    -
              REFERENCE           -          -           -          -          -           -     
CHAPTER FOUR
ANALYSIS AND INTERPRETATION OF RESULTS
4.1        INTRODUCTION    -    -    -    -    -           -    
4.2       DESCRIPTIVE STATISTICS     -    -           -          -           
4.3       CORRELATION ANALYSIS    -    -    -        -    
4.4       PANEL LEAST SQUARE REGRESSION RESULT         -    -    -    
4.5       DISCUSSION OF FINDINGS -     -          -       -    -    -    -    -    
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1        INTRODUCTION     -          -          -         -            -          -            -     
5.2       SUMMARY OF FINDINGS-           -         -            -          -            -         
5.3       CONCLUSION          -           -          -         -            -          -            
5.4       RECOMMENDATIONS      -           -         -            -          -             -    -    
            BIBLIOGRAPHY         -       -           -         -            -         -    -    
            APPENDIX I: REGRESSION DATA       -             -          
            APPENDIX II: REGRESSION RESULT-              -          -            -    -
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
After the collapse of Enron and the corporate scandals that started in October 2001 till present day, the confidence of the shareholders on management is seriously questioned. Thus, several investors, board of directors and government regulators have encouraged businesses to emphasis on corporate governance from different sides such as accounting and finance, economies, law and management. Corporate governance limits insiders’ abuse of power over corporate resources and provides the means to monitor behavior of managers for accountability and giving protection to investors (Ahmed, 2006).
In developing countries like Nigeria, apart from the problem of managing different firms also face the problem of managing conflicts within the immediate environment in which the business units are established. In an effort to address that most of the conglomerates embark on Corporate Social Responsibility (CSR). CSR simply means that companies in the cause of discharging their day to day activities for the purpose of profit realization should also take into consideration the effect of their activities on the members of the society in which the companies are residing and the environmental sustainability of their operations.
Corporate governance and corporate social responsibility have become hard to distinguish in the global economic landscape. Their convergence in the face of regulatory, business, and social changes in transnational markets has evoked debate and controversy over both the potential and limitations of corporate accountability mechanisms. CSR is increasingly becoming an essential issue for companies. It is a complex and multidimensional organizational phenomenon that is understood as the scope for which, and the ways in which, an organization is consciously responsible for its actions and non-actions and their impact on its stakeholders. It represents not just a change to the commercial setting in which individual companies operates, but also a pragmatic response of a company to its consumers and society (Ahmed, 2006). It is increasingly being understood as a means by which companies may endeavor to achieve a balance between their efforts to generate profits and the societies that they impact in these efforts.
1.2 STATEMENT OF RESEARCH PROBLEM
The issues of corporate governance and CSR have attracted considerable national and international attention and have again appeared at the top of the agenda with the current global financial meltdown. Corporate governance is about effective, transparent and accountable governance of affairs of an organization by its management and board. It is about a decision-making process that holds individuals accountable, encourages stakeholder participation and facilitates the flow of information. The ongoing global financial crisis has further reinforced the message that governance of firms, especially of financial institutions, should always aim at protecting the interests of all stakeholders, which include shareholders, depositors, creditors, regulators and the public.
Dalhat (2013) investigate the relationship between some sets of corporate governance (CG) mechanisms and earnings quality (EQ) of listed manufacturing companies in Nigeria. Four null hypotheses were formulated in line with the objectives of the study to test the variables. He adopted correlation research design and multiple regression for technique of data analysis. The results indicate that the corporate governance proxies have a significant impact on earnings quality of Nigerian Manufacturing companies.This establishes the fact that corporate governance plays a significant role in checkmating the unethical behaviors of managers in the Nigerian manufacturing sector and thus improving the earnings quality. The study is faulted in that the concept of CSR which significantly enhances firm performance was not taken into consideration in the study. Also, the study was sampled in the manufacturing sector which does not adequately capture the companies quoted in the Nigeria Stock Exchange. Therefore, the study takes a holistic view on corporate governance, corporate social responsibility and their effect on firm’s performance.
The research question arising from the statement of the problem above include:
What is the effect of board independence on firm performance?
What is the impact of board size on firm performance?
What is the effect of audit committee size on firm performance?
What is the influence of donations on charitable causes on firm performance?
What is the effect of expenditure on educational development on firm performance?
OBJECTIVES OF THE STUDY
The broad objective of the study is to examine the effect of corporate governance and corporate social responsibility on firm performance. Specifically, the study seek to:
Investigate the effect of board independence on firm performance.
Examine the impact of board size on firm performance.
Examine the extent to which audit committee size affect firm performance.
Investigate the effect of donations on charitable causes on firm performance.
Examine the extent to which expenditure on educational development affect firm performance.
HYPOTHESES OF THE STUDY
The hypotheses of the study are stated in their null form as follows:
H01: There is no significant relationship between board independence and firm performance.
H02:  There is no significant relationship between board size and firm performance.
H03:  There is no significant relationship between audit committee size and firm performance.
H04:  There is no significant relationship between donation on charitable causes and firm performance.
H05:  There is no significant relationship between expenditure on educational development and firm performance.
SIGNIFICANCE OF THE STUDY
The study should be of significance in that it serves as a pioneering effort in evaluating the effect of corporate governance, corporate social responsibility and their effect on firm performance of companies in Nigeria. This would assist the conglomerates in shaping their policy on corporate governance, CSR as it would reveal to them the extent to which it affects their performance. It would assist government in settling conflicts and disputes between the organization and the hosting environment. This could be possible by coming up with an acceptable benchmark as to what should be expended for corporate governance as it ensure management and stakeholders relationship and corporate social responsibility between the organization and the hosting community. The study should serve as a reference point to those that want to research further into the area. It would enable them have more insight into the subject matter under study.
1.6  SCOPE OF THE STUDY
This study examines the effect of corporate governance and corporate social responsibility on firm performance in Nigeria. A sample of twenty five (25) companies quoted in the Nigerian Stock Exchange will be taken into consideration from the period of 2010 – 2014. The time scope for this study was limited to this period because of the difficulty in accessing non financial data. There are 198 companies quoted in the Nigerian Stock Exchange.
LIMITATION OF THE STUDY
Admittedly, a number of factors acted as constraint to this study. In the first place, the fact that the sample is drawn from one particular area, on the basis of which generalized conclusion are made, is in itself a limiting factor. In the same vein, some other constraints include inadequate finances, time constraint which did not allow for more organization to be included on the sample.
 REFERENCES
Ahmed, K., Hossain, M. & Adams, M. B. (2006). The effects of board composition and board size on the in formativeness of annual accounting earnings. Corporate governance: an international review, 14(5).
Ahmed, S. (2006). Measuring earnings response to corporate governance reforms in Russia. pdf
Dalha, M. D. (2013). Corporate governance mechanisms and earnings quality of listed manufacturing companies in Nigeria.