Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria

Erhirhie Felix Erhinyoja; Ekwueme Chizoba Marcella

doi:doi:10.11648/j.ijafrm.20190402.12

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Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria

Erhirhie Felix Erhinyoja, Ekwueme Chizoba Marcella

Published in International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 2)

Received: 13 March 2019 Accepted: 17 April 2019 Published: 4 July 2019

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Abstract

This study examined corporate social sustainability reporting and financial performance of Oil and Gas Industry in Nigeria. Issues regarding corporate sustainability have gained global relevance in recent times owing to the increasing awareness that activities of most organizations may have adverse implicational effects on the ecosystems, societies, and environments of the future. Thus, companies are now being required to extend their strategic policies and information reportage to encompass sustainability reporting practices in order to meet the environmental and social needs of both current and future stakeholders. It is on this light that this study was set out to examine the effect of sustainability reporting on the financial performance of listed oil and gas companies in Nigeria. This study assessed the effect of corporate social sustainability reporting on Return on Assets, Return on Equity, and Return on Capital Employed of oil and gas companies listed on the Nigeria Stock Exchange. Ten oil and gas companies were sampled for the study. The study utilized secondary data collected via financial ratios and accounts of the individual companies and content analysis. The findings showed that social sustainability reporting exerts negative effect on all three performance proxies, howbeit only its effect on return on equity was statistically significant. The study recommends, among others, that existing sustainability reporting standards should be aligned to reflect country-specific social and environmental challenges, while its implementation should rather be obligatory rather than voluntary.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 4, Issue 2)
DOI	10.11648/j.ijafrm.20190402.12
Page(s)	44-60
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), 2019. Published by Science Publishing Group

Keywords

Social Sustainability Reporting, Return on Assets, Return on Equity, Capital Employed and Oil and Gas Industry

References

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Erhirhie Felix Erhinyoja, Ekwueme Chizoba Marcella. (2019). Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria. International Journal of Accounting, Finance and Risk Management, 4(2), 44-60. https://doi.org/10.11648/j.ijafrm.20190402.12

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Erhirhie Felix Erhinyoja; Ekwueme Chizoba Marcella. Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria. Int. J. Account. Finance Risk Manag. 2019, 4(2), 44-60. doi: 10.11648/j.ijafrm.20190402.12

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AMA Style

Erhirhie Felix Erhinyoja, Ekwueme Chizoba Marcella. Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria. Int J Account Finance Risk Manag. 2019;4(2):44-60. doi: 10.11648/j.ijafrm.20190402.12

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@article{10.11648/j.ijafrm.20190402.12,
  author = {Erhirhie Felix Erhinyoja and Ekwueme Chizoba Marcella},
  title = {Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {2},
  pages = {44-60},
  doi = {10.11648/j.ijafrm.20190402.12},
  url = {https://doi.org/10.11648/j.ijafrm.20190402.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190402.12},
  abstract = {This study examined corporate social sustainability reporting and financial performance of Oil and Gas Industry in Nigeria. Issues regarding corporate sustainability have gained global relevance in recent times owing to the increasing awareness that activities of most organizations may have adverse implicational effects on the ecosystems, societies, and environments of the future. Thus, companies are now being required to extend their strategic policies and information reportage to encompass sustainability reporting practices in order to meet the environmental and social needs of both current and future stakeholders. It is on this light that this study was set out to examine the effect of sustainability reporting on the financial performance of listed oil and gas companies in Nigeria. This study assessed the effect of corporate social sustainability reporting on Return on Assets, Return on Equity, and Return on Capital Employed of oil and gas companies listed on the Nigeria Stock Exchange. Ten oil and gas companies were sampled for the study. The study utilized secondary data collected via financial ratios and accounts of the individual companies and content analysis. The findings showed that social sustainability reporting exerts negative effect on all three performance proxies, howbeit only its effect on return on equity was statistically significant. The study recommends, among others, that existing sustainability reporting standards should be aligned to reflect country-specific social and environmental challenges, while its implementation should rather be obligatory rather than voluntary.},
 year = {2019}
}

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TY  - JOUR
T1  - Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria
AU  - Erhirhie Felix Erhinyoja
AU  - Ekwueme Chizoba Marcella
Y1  - 2019/07/04
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190402.12
DO  - 10.11648/j.ijafrm.20190402.12
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  - 44
EP  - 60
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190402.12
AB  - This study examined corporate social sustainability reporting and financial performance of Oil and Gas Industry in Nigeria. Issues regarding corporate sustainability have gained global relevance in recent times owing to the increasing awareness that activities of most organizations may have adverse implicational effects on the ecosystems, societies, and environments of the future. Thus, companies are now being required to extend their strategic policies and information reportage to encompass sustainability reporting practices in order to meet the environmental and social needs of both current and future stakeholders. It is on this light that this study was set out to examine the effect of sustainability reporting on the financial performance of listed oil and gas companies in Nigeria. This study assessed the effect of corporate social sustainability reporting on Return on Assets, Return on Equity, and Return on Capital Employed of oil and gas companies listed on the Nigeria Stock Exchange. Ten oil and gas companies were sampled for the study. The study utilized secondary data collected via financial ratios and accounts of the individual companies and content analysis. The findings showed that social sustainability reporting exerts negative effect on all three performance proxies, howbeit only its effect on return on equity was statistically significant. The study recommends, among others, that existing sustainability reporting standards should be aligned to reflect country-specific social and environmental challenges, while its implementation should rather be obligatory rather than voluntary.
VL  - 4
IS  - 2
ER  -

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Author Information

Erhirhie Felix Erhinyoja

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria
Ekwueme Chizoba Marcella

Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria

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APA Style

Erhirhie Felix Erhinyoja, Ekwueme Chizoba Marcella. (2019). Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria. International Journal of Accounting, Finance and Risk Management, 4(2), 44-60. https://doi.org/10.11648/j.ijafrm.20190402.12

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ACS Style

Erhirhie Felix Erhinyoja; Ekwueme Chizoba Marcella. Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria. Int. J. Account. Finance Risk Manag. 2019, 4(2), 44-60. doi: 10.11648/j.ijafrm.20190402.12

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AMA Style

Erhirhie Felix Erhinyoja, Ekwueme Chizoba Marcella. Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria. Int J Account Finance Risk Manag. 2019;4(2):44-60. doi: 10.11648/j.ijafrm.20190402.12

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@article{10.11648/j.ijafrm.20190402.12,
  author = {Erhirhie Felix Erhinyoja and Ekwueme Chizoba Marcella},
  title = {Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {4},
  number = {2},
  pages = {44-60},
  doi = {10.11648/j.ijafrm.20190402.12},
  url = {https://doi.org/10.11648/j.ijafrm.20190402.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20190402.12},
  abstract = {This study examined corporate social sustainability reporting and financial performance of Oil and Gas Industry in Nigeria. Issues regarding corporate sustainability have gained global relevance in recent times owing to the increasing awareness that activities of most organizations may have adverse implicational effects on the ecosystems, societies, and environments of the future. Thus, companies are now being required to extend their strategic policies and information reportage to encompass sustainability reporting practices in order to meet the environmental and social needs of both current and future stakeholders. It is on this light that this study was set out to examine the effect of sustainability reporting on the financial performance of listed oil and gas companies in Nigeria. This study assessed the effect of corporate social sustainability reporting on Return on Assets, Return on Equity, and Return on Capital Employed of oil and gas companies listed on the Nigeria Stock Exchange. Ten oil and gas companies were sampled for the study. The study utilized secondary data collected via financial ratios and accounts of the individual companies and content analysis. The findings showed that social sustainability reporting exerts negative effect on all three performance proxies, howbeit only its effect on return on equity was statistically significant. The study recommends, among others, that existing sustainability reporting standards should be aligned to reflect country-specific social and environmental challenges, while its implementation should rather be obligatory rather than voluntary.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria
AU  - Erhirhie Felix Erhinyoja
AU  - Ekwueme Chizoba Marcella
Y1  - 2019/07/04
PY  - 2019
N1  - https://doi.org/10.11648/j.ijafrm.20190402.12
DO  - 10.11648/j.ijafrm.20190402.12
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  - 44
EP  - 60
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20190402.12
AB  - This study examined corporate social sustainability reporting and financial performance of Oil and Gas Industry in Nigeria. Issues regarding corporate sustainability have gained global relevance in recent times owing to the increasing awareness that activities of most organizations may have adverse implicational effects on the ecosystems, societies, and environments of the future. Thus, companies are now being required to extend their strategic policies and information reportage to encompass sustainability reporting practices in order to meet the environmental and social needs of both current and future stakeholders. It is on this light that this study was set out to examine the effect of sustainability reporting on the financial performance of listed oil and gas companies in Nigeria. This study assessed the effect of corporate social sustainability reporting on Return on Assets, Return on Equity, and Return on Capital Employed of oil and gas companies listed on the Nigeria Stock Exchange. Ten oil and gas companies were sampled for the study. The study utilized secondary data collected via financial ratios and accounts of the individual companies and content analysis. The findings showed that social sustainability reporting exerts negative effect on all three performance proxies, howbeit only its effect on return on equity was statistically significant. The study recommends, among others, that existing sustainability reporting standards should be aligned to reflect country-specific social and environmental challenges, while its implementation should rather be obligatory rather than voluntary.
VL  - 4
IS  - 2
ER  -

Copy | Download