Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria

Sunday Ajao Owolabi; Olajire Aremu Odunlade; Olayemi Oluwadamilola Amosun

doi:doi:10.11648/j.ijafrm.20220702.14

| Peer-Reviewed

Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria

Sunday Ajao Owolabi, Olajire Aremu Odunlade, Olayemi Oluwadamilola Amosun

Published in International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 2)

Received: 20 May 2022 Accepted: 6 June 2022 Published: 16 June 2022

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Organizations are operating in a world where they must carry out social, environmental, and economic functions and obligations. All corporations and stakeholders are focusing on the need for social and environmental accounting. This paper studied the impact of corporate social responsibility on the earnings per share of Oil and Gas companies in Nigeria, using ex-post-facto research design, where 8 Oil and Gas companies in Nigeria were examined for a period of 10 years. Total enumeration sampling technique was adopted for the study, and descriptive and inferential statistics were used to analyze the data. The study's findings demonstrated that corporate social responsibility had no bearing on earnings per share (EPS) (Adj R2 = 0.2579, F-Stat = 3.34, p = 0.1885) of Oil and Gas companies in Nigeria. The study concluded that corporate social responsibility has no significant effect on the earnings per share of Oil and Gas companies in Nigeria. The study recommends that policies should be made for oil and gas companies to report mandatorily about their corporate social responsibilities in their annual reports.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 2)
DOI	10.11648/j.ijafrm.20220702.14
Page(s)	56-62
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Corporate Social Responsibility, Earnings Per Share, Oil and Gas Companies

References

[1]	Abdalla, Y. A., Siti-Nabiha, A. K., & Shahbudin, A. S. (2014). Social and Environmental Accounting Research: The Way Forward. International Journal of Economics and Management, 8 (2), 365-383. http://www.ijem.upm.edu.my/vol8no2/bab06.pdf.
[2]	Abdullah, A. (2018). Social and Environmental Accounting Effect on Companies' Profit (An empirical study of some companies in Erbil). Account and Financial Management Journal, 03 (07). doi: 10.31142/afmj/v3i7.03.
[3]	Adegbie, F. F. (2020). Environmental Accounting (Course Notes). Lecture, Babcock University (Unpublished).
[4]	Akter, N., Siddik, A. B & Mondal, S. A. (2018). Corporate Social Responsibility Disclosure Practices and Banks Financial Performance: A Study on Listed Private Commercial Banks in Bangladesh. Journal of Business and Technology, 13 (1), 1-19.
[5]	Choiriyah, C., Fatimah, F., Agustina, S., & Ulfa, U. (2020). The Effect of Return On Assets, Return On Equity, Net Profit Margin, Earning Per Share and Operating Profit Margin On Stock Prices of Banking Companies in Indonesia Stock Exchange. International Journal of Finance Research, 1 (2), 103-123. https://doi.org/10.47747/ijfr.v1i2.280
[6]	Dhar, S., & Chowdhury, M. (2021). Impact of Environmental Accounting Reporting Practices on Financial Performance. International Journal of Asian Business and Information Management, 12 (1), 24-42. https://doi.org/10.4018/ijabim.20210101.oa2
[7]	Emeke, E., Olaoye, S., & Ogundajo, G. (2021). Effect of Social and Environmental Disclosure on the Performance of Listed Consumer Goods Producing Companies in Nigeria. International Journal of Applied Economics, Finance and Accounting, 11 (1), 35-47. https://doi.org/10.33094/8.2017.2021.111.35.47
[8]	Eze, J., Nweze, A., & Enekwe, C. (2016). The Effects of Environmental Accounting on a Developing Nation: Nigerian Experience. European Journal of Accounting, Auditing and Finance Research, 4 (1), 17-27.
[9]	Gull, S., Hanchinal, A., & Salma, M. (2013). Social Accounting-A survey. International Journal of Application or Innovation in Engineering & Management, 2 (5).
[10]	Ha, T., Sibghatullah, A., Chae, S., & Aldeehani, T. (2020). The Impact of Environmental and Social Disclosure on Earnings Persistence. International Journal Of Energy Economics And Policy, 10 (6), 690-696. https://doi.org/10.32479/ijeep.10625
[11]	Han, O. (2012) ‘The importance of environmental accounting in the context of sustainable development and within IFRS evaluation’, 3rd International Symposium on Sustainable Development, 31 May–1 June, Sarajevo.
[12]	Igbekoyi, O., Ogungbade, O., & Olaleye, A. (2021). Financial Performance and Environmental Sustainability Reporting Practices of Listed Manufacturing Firms in Nigeria. Global Journal of Accounting, 7 (1), 15-24. Retrieved from http://gja.unilag.edu.ng/article/view/1203/953.
[13]	Iheduru, N., & Chukwuma, I. (2019). Effect of Environmental and Social Cost on Performance of Manufacturing Companies in Nigeria. International Journal of Accounting & Finance Review, 4 (2), 5-12. https://doi.org/10.46281/ijafr.v4i2.378
[14]	Islam, R., Khan, T., Choudhury, T., & Adnan, A. (2014). How Earning Per Share (EPS) Effects on Share Price and Firm Value. European Journal of Business and Management, 6 (17), 97-108.
[15]	Iwata, H., & Okada, K. (2011). Analysis: How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms. Ecological Economics, 70, 1691-1700.
[16]	Kumar, N., Pranitha, T., & Kumar, N. (2017). A Study on Green Accounting and Its Practices in India. IOSR Journal of Business and Management, 1 (6), 30-34. Retrieved from http://www.iosrjournals.org/iosr-jbm/papers/Conf.17037-2017/Volume-1/6.%2030-34.pdf
[17]	Latapí Agudelo, M., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4 (1). https://doi.org/10.1186/s40991-018-0039-y
[18]	Li, K., Khalili, N., & Cheng, W. (2019). Corporate Social Responsibility Practices in China: Trends, Context, and Impact on Company Performance. Sustainability, 11 (2), 354. https://doi.org/10.3390/su11020354
[19]	McWilliams, A., Siegel, D., & Wright, P. (2006). Corporate Social Responsibility: Strategic Implications. Journal of Management Studies, 43 (1), 1-18. https://doi.org/10.1111/j.1467-6486.2006.00580.x
[20]	Mohammed, S. (2018). Mandatory Social and Environmental Disclosure: A Performance Evaluation of Listed Nigerian Oil and Gas Companies Pre- and Post-Mandatory Disclosure Requirements. Journal of Finance and Accounting, 6 (2), 56. https://doi.org/10.11648/j.jfa.20180602.12
[21]	Nor, N., Bahari, N., Adnan, N., Kamal, S., & Ali, I. (2016). The Effects of Environmental Disclosure on Financial Performance in Malaysia. Procedia Economics and Finance, 35, 117-126. https://doi.org/10.1016/s2212-5671(16)00016-2
[22]	Nuzula, N. (2019). Does environmental cost affect Japanese Firms' performance? International Journal of Professional Business Review, 4 (1), 14-21. https://doi.org/10.26668/businessreview/2019.v4i1.105
[23]	Nwaimo, S. (2020). Effect of Environmental Cost on Performances of Quoted Firms in Sub-Saharan Africa, 2007-2016. European Journal of Accounting, Auditing and Finance Research, 8 (7), 97-120. https://doi.org/10.37745/ejaafr/vol8.no7.pp97-120.2020
[24]	Ojo, L., Hassan, I., & Abubakar, I. (2018). Effects of Corporate Social Responsibility On Corporate Financial Performance of Quoted Pharmaceutical Firms in Nigeria. In Managing National Recovery (pp. 402-417). Keffi; Nasarawa State University.
[25]	Ong, T., Tho, H., Goh, H., Thai, S., & Teh, B. (2016). The relationship between environmental disclosures and financial performance of public listed companies in Malaysia. International Business Management, 10 (4), 461-467.
[26]	Onyekachi, S., Ihendinihu, J., & Azubike, J. (2020). Environmental Costs Accounting and the Earnings of Oil Firms in Nigeria. IIARD International Journal of Economics and Business Management, 6 (2), 37-51.
[27]	Ordu, P., & Amah, C. (2021). Sustainability Accounting and Financial Performance of Oil and Gas Companies in Nigeria. International Journal of Innovative Finance and Economics Research, 9 (1), 182-192. https://seahipaj.org/journals-ci/mar-2021/IJIFER/full/IJIFER-M-16-2021.pdf.
[28]	Ritchie, H., & Roser, M. (2020). CO₂ and Greenhouse Gas Emissions. Retrieved from: https://ourworldindata.org/co2-and-other-greenhouse-gas-emissions
[29]	Sameer, I. (2021). Impact of corporate social responsibility on organization’s financial performance: evidence from Maldives public limited companies. Future Business Journal, 7 (1). https://doi.org/10.1186/s43093-021-00075-8
[30]	Soetan, T., Owolabi, S., & Asein, A. (2018). The Demand and Supply for Financial Information: The Prerequisites for the Evolution and Development of Auditing and Relevance of Contingency Theory. International Journal of Advanced Research, 6 (8), 237-249. https://doi.org/10.21474/ijar01/7515
[31]	Sudirman, Kamaruddin, & Possumah, B. (2020). The Influence of Net Profit Margin, Debt to Equity Ratio, Return on Equity, and Earning per Share on the Share Prices of Consumer Goods Industry Companies in Indonesia. International Journal of Advanced Science and Technology, 29 (7), 13428- 13440.
[32]	Sulaiman, A., Ahmadu, A., & Mijinyawa, U. (2018). Effect of Corporate Social Responsibility Expenditure on the Profitability of Listed Oil and Gas Firms in Nigeria. Journal of Accounting and Management, 1 (2), 148-154.
[33]	Vadera, M., & Harsha, P. (2018). Social Accounting: A Technique to Measure CSR Practices. Annals of Management Research, 8 (1), 16-23.
[34]	World Bank Open Data \| Data. Data.worldbank.org. (2021). https://data.worldbank.org
[35]	Yuliza, A. (2018). The Effects of Earnings Per Share and Firm Size to Stock Price LQ45 Company Listed in Indonesian Securities. International Journal of Engineering & Technology, 7 (4.9), 247-249. https://doi.org/10.14419/ijet.v7i4.9.21089

Cite This Article

Plain Text BibTeX RIS

APA Style

Sunday Ajao Owolabi, Olajire Aremu Odunlade, Olayemi Oluwadamilola Amosun. (2022). Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria. International Journal of Accounting, Finance and Risk Management, 7(2), 56-62. https://doi.org/10.11648/j.ijafrm.20220702.14

Copy | Download

ACS Style

Sunday Ajao Owolabi; Olajire Aremu Odunlade; Olayemi Oluwadamilola Amosun. Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria. Int. J. Account. Finance Risk Manag. 2022, 7(2), 56-62. doi: 10.11648/j.ijafrm.20220702.14

Copy | Download

AMA Style

Sunday Ajao Owolabi, Olajire Aremu Odunlade, Olayemi Oluwadamilola Amosun. Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria. Int J Account Finance Risk Manag. 2022;7(2):56-62. doi: 10.11648/j.ijafrm.20220702.14

Copy | Download

@article{10.11648/j.ijafrm.20220702.14,
  author = {Sunday Ajao Owolabi and Olajire Aremu Odunlade and Olayemi Oluwadamilola Amosun},
  title = {Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {7},
  number = {2},
  pages = {56-62},
  doi = {10.11648/j.ijafrm.20220702.14},
  url = {https://doi.org/10.11648/j.ijafrm.20220702.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20220702.14},
  abstract = {Organizations are operating in a world where they must carry out social, environmental, and economic functions and obligations. All corporations and stakeholders are focusing on the need for social and environmental accounting. This paper studied the impact of corporate social responsibility on the earnings per share of Oil and Gas companies in Nigeria, using ex-post-facto research design, where 8 Oil and Gas companies in Nigeria were examined for a period of 10 years. Total enumeration sampling technique was adopted for the study, and descriptive and inferential statistics were used to analyze the data. The study's findings demonstrated that corporate social responsibility had no bearing on earnings per share (EPS) (Adj R2 = 0.2579, F-Stat = 3.34, p = 0.1885) of Oil and Gas companies in Nigeria. The study concluded that corporate social responsibility has no significant effect on the earnings per share of Oil and Gas companies in Nigeria. The study recommends that policies should be made for oil and gas companies to report mandatorily about their corporate social responsibilities in their annual reports.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria
AU  - Sunday Ajao Owolabi
AU  - Olajire Aremu Odunlade
AU  - Olayemi Oluwadamilola Amosun
Y1  - 2022/06/16
PY  - 2022
N1  - https://doi.org/10.11648/j.ijafrm.20220702.14
DO  - 10.11648/j.ijafrm.20220702.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 56
EP  - 62
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20220702.14
AB  - Organizations are operating in a world where they must carry out social, environmental, and economic functions and obligations. All corporations and stakeholders are focusing on the need for social and environmental accounting. This paper studied the impact of corporate social responsibility on the earnings per share of Oil and Gas companies in Nigeria, using ex-post-facto research design, where 8 Oil and Gas companies in Nigeria were examined for a period of 10 years. Total enumeration sampling technique was adopted for the study, and descriptive and inferential statistics were used to analyze the data. The study's findings demonstrated that corporate social responsibility had no bearing on earnings per share (EPS) (Adj R2 = 0.2579, F-Stat = 3.34, p = 0.1885) of Oil and Gas companies in Nigeria. The study concluded that corporate social responsibility has no significant effect on the earnings per share of Oil and Gas companies in Nigeria. The study recommends that policies should be made for oil and gas companies to report mandatorily about their corporate social responsibilities in their annual reports.
VL  - 7
IS  - 2
ER  -

Copy | Download

Author Information

Sunday Ajao Owolabi

Department of Accounting, Babcock University, Ilisan-Remo, Nigeria
Olajire Aremu Odunlade

Department of Accounting, Babcock University, Ilisan-Remo, Nigeria
Olayemi Oluwadamilola Amosun

Department of Accounting, Babcock University, Ilisan-Remo, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Sunday Ajao Owolabi, Olajire Aremu Odunlade, Olayemi Oluwadamilola Amosun. (2022). Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria. International Journal of Accounting, Finance and Risk Management, 7(2), 56-62. https://doi.org/10.11648/j.ijafrm.20220702.14

Copy | Download

ACS Style

Sunday Ajao Owolabi; Olajire Aremu Odunlade; Olayemi Oluwadamilola Amosun. Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria. Int. J. Account. Finance Risk Manag. 2022, 7(2), 56-62. doi: 10.11648/j.ijafrm.20220702.14

Copy | Download

AMA Style

Sunday Ajao Owolabi, Olajire Aremu Odunlade, Olayemi Oluwadamilola Amosun. Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria. Int J Account Finance Risk Manag. 2022;7(2):56-62. doi: 10.11648/j.ijafrm.20220702.14

Copy | Download

@article{10.11648/j.ijafrm.20220702.14,
  author = {Sunday Ajao Owolabi and Olajire Aremu Odunlade and Olayemi Oluwadamilola Amosun},
  title = {Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {7},
  number = {2},
  pages = {56-62},
  doi = {10.11648/j.ijafrm.20220702.14},
  url = {https://doi.org/10.11648/j.ijafrm.20220702.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20220702.14},
  abstract = {Organizations are operating in a world where they must carry out social, environmental, and economic functions and obligations. All corporations and stakeholders are focusing on the need for social and environmental accounting. This paper studied the impact of corporate social responsibility on the earnings per share of Oil and Gas companies in Nigeria, using ex-post-facto research design, where 8 Oil and Gas companies in Nigeria were examined for a period of 10 years. Total enumeration sampling technique was adopted for the study, and descriptive and inferential statistics were used to analyze the data. The study's findings demonstrated that corporate social responsibility had no bearing on earnings per share (EPS) (Adj R2 = 0.2579, F-Stat = 3.34, p = 0.1885) of Oil and Gas companies in Nigeria. The study concluded that corporate social responsibility has no significant effect on the earnings per share of Oil and Gas companies in Nigeria. The study recommends that policies should be made for oil and gas companies to report mandatorily about their corporate social responsibilities in their annual reports.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Corporate Social Responsibility and Earnings Per Share of Oil and Gas Companies in Nigeria
AU  - Sunday Ajao Owolabi
AU  - Olajire Aremu Odunlade
AU  - Olayemi Oluwadamilola Amosun
Y1  - 2022/06/16
PY  - 2022
N1  - https://doi.org/10.11648/j.ijafrm.20220702.14
DO  - 10.11648/j.ijafrm.20220702.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 56
EP  - 62
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20220702.14
AB  - Organizations are operating in a world where they must carry out social, environmental, and economic functions and obligations. All corporations and stakeholders are focusing on the need for social and environmental accounting. This paper studied the impact of corporate social responsibility on the earnings per share of Oil and Gas companies in Nigeria, using ex-post-facto research design, where 8 Oil and Gas companies in Nigeria were examined for a period of 10 years. Total enumeration sampling technique was adopted for the study, and descriptive and inferential statistics were used to analyze the data. The study's findings demonstrated that corporate social responsibility had no bearing on earnings per share (EPS) (Adj R2 = 0.2579, F-Stat = 3.34, p = 0.1885) of Oil and Gas companies in Nigeria. The study concluded that corporate social responsibility has no significant effect on the earnings per share of Oil and Gas companies in Nigeria. The study recommends that policies should be made for oil and gas companies to report mandatorily about their corporate social responsibilities in their annual reports.
VL  - 7
IS  - 2
ER  -

Copy | Download