Volume 4, Issue 2, June 2019, Page: 44-60
Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria
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
Received: Mar. 13, 2019;       Accepted: Apr. 17, 2019;       Published: Jul. 4, 2019
DOI: 10.11648/j.ijafrm.20190402.12      View  175      Downloads  75
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.
Keywords
Social Sustainability Reporting, Return on Assets, Return on Equity, Capital Employed and Oil and Gas Industry
To cite this article
Erhirhie Felix Erhinyoja, Ekwueme Chizoba Marcella, Corporate Social Sustainability Reporting and Financial Performance of Oil and Gas Industry in Nigeria, International Journal of Accounting, Finance and Risk Management. Vol. 4, No. 2, 2019, pp. 44-60. doi: 10.11648/j.ijafrm.20190402.12
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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