SOURCE:

Faculty: Management Sciences
Department: Accountancy

CONTRIBUTORS:

EHIOGHIREN, E.E
NZEWI, U.C
OKAFOR, T.O

ABSTRACT:

The absence of an existing accounting standard generally accepted framework and theory in Nigeria for reporting on corporate social responsibility accounting has made organizations to adopt different approaches, policies, philosophies, methodologies and measurement of social responsibility reporting. The main objective of the study was to determine corporate social responsibility accounting and financial performance of insurance companies in Nigeria. The research design adopted for the study is quasi- experimental research design. The population of the study consists of all the 40 companies quoted in the Nigeria Stock Exchange as at December 2016. A sample of 25 insurance companies was selected base on their size from the population of the insurance companies. Data for the study were obtained from annual reports for the period of ten (10) years ranging from 2007 to 2016. Multiple regression analysis was carried out to determine the desire relationship, while Cochran Q- test was employed to assess whether there is significant difference in the accounting and reporting among insurance companies. Independent sample test was used to compare the social responsibility expenditure of insurance companies with those of banks. Findings show a significant relationship between corporate social responsibility accounting and return on capital employed and net profit margin. Finally, it was established that there was significant difference in the social responsibility expenditure of banks and insurance companies in Nigeria. The implications of the findings is the variation in the companies’ reporting which could be linked to lack of legal prescriptions and ignorance of the benefits of social accounting and reporting. The study recommends among other that management should be proactive and ensure that their social responsibility policies are adequately implemented, and ensure that Nigerian companies comply with government laws regarding business regulation in the country. The FRC should come up with clearly defined regulatory frame work on how to go about social responsibility issues in Nigeria and should ensure its full implementations. The study concluded that insurance companies have existence of corporate social responsibility policy; varied nature of social responsibility activities which translated into the different ranges of coverage of social report, approach to corporate social accounting, areas of social initiative, furthermore none of the insurance companies stated their approaches to measurement of social contribution.