ABSTRACT
The purpose of this study is to investigate the causal relation between corporate social responsibility and market value. This study uses a multiple
regression model for the purpose of explaining the impact of corporate social responsibility on market value of quoted conglomerates in Nigeria for the period 2001 to 2006. The model employs Community Social Responsibility, Human Resource Management, Charitable Contribution and firm size as explanatory variables in order to predict market value as represented by Tobin's Equity Q.
The study reveals that the explanatory variables have significant aggregate impact on market value. This result offers evidence on the utility of the model in explaining the CSR - market value relationship in quoted conglomerates in Nigeria. The study establishes an insignificant relationship between community social responsibility, Human resource management and market value. On the
other hand, charitable contributions have been found to have a negative impact on market value of quoted conglomerates while firm size has been found to play a significant role in the CSR-market value relationship. On the basis of the findings of the study it has been recommended that businesses carry out social responsibilities reflective of their corporate size and capability. Finally, the study recognizes the limitation of the model of this study in providing an understanding of whether or not socially responsible firms outperform the socially reprehensible ones and precisely how much a firm should spend on
CSR. It therefore calls for caution in the extrapolation of the findings of the study and encourages further research on the possible CSR- Financial
performance relationship in Nigeria.
