Corporate Social Responsibility and Financial Sustainability of Oil and Gas Firms in Nigeria
Orajekwe Jerry Chukwuebuka
*
Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.
Okafor Obumneme Obiora
Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.
Okoye Emmanuel Ikechukwu
Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
Aims: The study examined the effect of corporate social responsibility on financial sustainability of quoted oil and gas firms in Nigeria.
Study Design: The research work adopted for the study ex-post facto research design. Secondary data spanning 2009 to 2020 was sourced and collated from financial statement of oil and gas firms annual report in Nigeria and Nigeria Stock Exchange factbook.
Place of Study: Department of Accountancy, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.
Methodology: The data was analyzed employing the Pearson coefficient correlation and least square regression technique.
Results: The study revealed that corporate social responsibility has a significant positive effect on net profit margin and return on asset of quoted oil and gas firms in Nigeria at 5% level of significance.
Conclusion: Given the integral role the Oil and Gas sector plays in Nigeria, this paper showed the importance of corporate social responsibility in ensuring the financial sustainability of corporations in the Nigerian Oil and Gas industry.
Keywords: Corporate social responsibility, oil and gas, profit, sustainability.