Influence of Corporate Social Responsibility Voluntary Disclosure on Financial Performance of Companies Listed in East Africa
Although, all firms are geared towards profit maximization there is need to engage in non profit making activities which are geared towards cordial relationship between all stakeholders. Information asymmetry has great impact on financial performance since investment decision is based on information availability. Thus, there is need for all listed companies to freely share information on social engagement so as to eliminate speculation. This will minimize information costs and consequently trigger positive financial performance. Currently, the influence of corporate social responsibility voluntary disclosure and how it impacted financial performance of listed companies in East Africa securities exchanges. Regression analysis was applied to analyse secondary data collected from annual financial statements. Positive and significant relationship was reported between social, environmental disclosures and financial performance of listed companies in East Africa securities exchanges.
Social disclosure, environmental disclosure, Financial Performance.
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