December 2025 Edition

Corporate Social Responsibilities (Csr) and Firm Growth in Listed Nigerian Consumer Goods Firms: A Non-Linear Fixed Effect Panel Threshold (Fept) Estimator Approach

TIJANI Jamiu Olakunle , FAPOHUNDA Moradeke Tinuke, EGBEYEMI Bolanle Maruf

Abstract

The Nigerian consumer goods sector, in recent time, has been
grappling with pronounced macroeconomic headwinds, which have
resulted in a marked decline in sectoral market capitalization. This
downturn raises concerns about the sustainability of firm growth, as
reflected in diminishing revenue figures. Despite the growing
importance of corporate social responsibility (CSR) as a potential lever
for firm performance, its specific impact on firm growth within this
challenging context remains underexplored and insufficiently
addressed in existing literature. To address this gap, this study utilizes
the non-linear fixed-effect panel threshold (FEPT) estimator method by
Hansen (1999) to investigate how CSR expenditures influence the
growth of listed Nigerian consumer goods firms, using revenue growth
as a proxy for firm growth. The research adopts an ex post facto design
and analyzes secondary data from 2012 to 2022. Findings revealed a
threshold effect as follows: CSR expenses significantly influence
revenue growth only in firms with high CSR spending (?=0.0057,
p=0.009), while the effect is insignificant in firms with low CSR
spending (?=4.61×10??, p=0.486). The study concluded that robust
CSR investments are linked to enhanced firm growth in Nigeria’s
consumer goods sector, supporting stakeholders’ and social contract
theories. It is recommended that consumer goods firms should improve
on their CSR efforts to drive up revenue generation, while ultimately
supporting sustainable growth.

Keywords

Consumer Goods Firms; Corporate Social Responsibilities; Firm Age; Firm Growth; Revenue Growth.

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