IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 11 NO. 5 2025
DOI: 10.56201/ijssmr.vol.11no5.2025.pg280.294

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Effect of Corporate Social Responsibility Expenditure on Financial Performance of Quoted Oil and Gas Companies in Nigeria

Ubesie Cyril Madubuko, Nweke Arinze Stanley, Onah Chinyere Esther :

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Abstract

The study examined the effect of Corporate Social Responsibility Expenditure on Financial Performance of quoted oil and gas companies in Nigeria from 2012-2021.Using an ex – post – facto research design, data on the proxies of corporate social responsibility expenditure – community development expenditure, human capacity development expenditure, and environmental expenditure. Financial performances were extracted from the annual reports and accounts of 9 listed oil/ gas companies in Nigeria for the period 2012 to 2021. The data extracted were analyzed using descriptive and inferential (regression) statistics with the aid of E-view version 10. A descriptive analysis of the data was conducted to obtain the sample characteristic and observe the level of corporate social responsibility expenditure among the companies. The ordinary least square analysis was performed to test the effect of CSRE dimensions and financial performance indicator. The results of the regression showed that CSRE dimensions and independent proxies used have positive significant relationship with financial performance measure of – return on equity. The study therefore concluded that independent proxies used bring about improvement in the financial performance of sampled oil/gas companies in Nigeria since they maintained positive significant relationship. The study recommended that oil and gas companies should sustain corporate support to community development, pay attention to human capacity building, provide competitive employee benefits and ensure that the expenditure of these initiatives are reflected in their annual reports and accounts for a better financial performance.

keywords:

corporate social responsibility, Return on Equity, community development

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