CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA: THE MODERATING EFFECT OF FOREIGN OWNERSHIP

Keywords: CSRD, Foreign Ownership, Firm Value.

Abstract

This study examines the moderating effect of foreign ownership on the relationship between corporate social responsibility disclosure and the value of listed oil and gas companies in Nigeria. This study adopted an explanatory research design to achieve this objective using secondary data collected from annual reports and accounts of the sampled companies for four years (2018-2021). The study employs multiple regression using panel-corrected standard error (PCSE) to analyze data for the study. Findings indicate that corporate social responsibility disclosure has a positive significant impact on firm value. Results also revealed that foreign ownership has a positive but insignificant impact on firm value. Furthermore, on the interaction effect of foreign ownership on the relationship between corporate social responsibility disclosure and firm value, the result indicates that foreign ownership has moderated the relationship between corporate social responsibility disclosure and the value of listed oil and gas companies in Nigeria by strengthening the existing relationship. The findings of this study encourage more investment from foreign investors to increase the disclosure of CSR to enhance the value of listed oil and gas companies in Nigeria. Finally, the study recommends that the management of listed oil and gas companies should diversify to attract more foreign investors to improve the value of their companies.

JEL Classification Codes: O16.

References

Ali, S., Zhang, J., Naseem, M. A., & Ahmad, F. (2019). Moderating role of ownership in relationship between CSRD and firm performance. The Journal of Developing Areas, 53(3). https://doi.org/10.1353/jda.2019.0048

Amin, A. A., & Hamdan, A. M. (2018). Evaluating the effect of ownership structure on firm performance: Evidence from Saudi Arabian listed companies. Journal of Economic Cooperation & Development, 39(3), 65-92.

Carroll, A. B. (1999). Corporate social responsibility: Evolution of a definitional construct. Business & society, 38(3), 268-295. https://doi.org/10.1177/000765039903800303

Dakhlallh, M. M., Rashid, N, Abdullah, W. A. W., & Dukhlallh, A. M. (2021). Ownership structure and firm performance: Evidence from Jordan. Journal of Contemporary issues in Business and Government, 27(2), 79-90. http://dx.doi.org/10.47750/cibg.2021.27.02.011

Deck, M. (1994). Essay in the Toronto Conference: reflections on stakeholder theory. Business and Society, 33(1), 108-10. https://doi.org/10.1177/000765039403300105

Emeka-Nwokeji, N. A. (2019). Nexus between corporate social responsibility disclosures and market value of listed non-financial firms in Nigeria. International Journal for Innovative Research in Multidisciplinary Field, 5(3), 247-255.

Ishtiaq, M., Latif, K., Khan, A. N., & Noreen, R. (2017). Corporate Social Responsibility and Firm Performance: The Moderating Effect of Ownership Concentration. Journal of Managerial Sciences, 11(3),353-386.

Jensen, M. (2001). Value maximisation, stakeholder theory, and the corporate objective function. European financial management, 7(3), 297-317. https://doi.org 110.1111//1468036x.00158

Kaler, J. (2003). Differentiating stakeholder theories. Journal of Business Ethics, 46, 71-83. https://doi.org/10.1023/A:1024794710899

Kim, W. S., Park, K., & Lee, S. H. (2018). Corporate social responsibility, ownership structure, and firm value: Evidence from Korea. Sustainability, 10(7), 2497. https://doi.org/10.3390/su10072497

Lawal, O. D., Agbi, E. S., & Mustapha, L. O. (2018). Effect of Ownership Structure on Financial Performance of Listed Insurance Firms in Nigeria. Journal of Accounting, Finance and Auditing Studies, 4(3), 123-148.

Mukthar, J. (2016). Corporate social responsibility disclosure and firm value of the listed conglomerate Companies in Nigeria, unpublished dissertation in partial fulfilment of the award of MSC degree Bayero University Kano, Nigeria

Nguyen, V., Dang, H. N., Vu, V.T.T., & Hoang, H.T.V. (2018). Impact of social responsibility information disclosure the financial performance of enterprises. International Journal of Accounting, 6(3).

Oyedokun, G. E., Isah, S., & Awotomilusi, N. S. (2020). Ownership structure and firm value of quoted consumers goods firms in Nigeria. JASF, 3(2), 214-228.

Ruf, B. M., Muralidhar, K., Brown, R. M., Janney, J. J., & Paul, K. (2001). An empirical investigation of the relationship between change in corporate social performance and financial performance: A stakeholder theory perspective. Journal of business ethics, 32, 143-156. https://doi.org/10.1023/A:1010786912118

Salisu, U., Sani, S., & Lawan, J. (2018). Corporate social responsibility disclosure and the value of listed conglomerates firms in Nigeria. Asian Journal of Economics, Business and Accounting, 7(4), 1-8.

Sopian, A., & Mulya, H. (2018). The impact of corporate social responsibility disclosure on firm v in Indonesia. International Journal of Scientific Research and Management, 6(1), 813-823. https://doi.org/10.18535/ijsrm/v6i11.em01

Sylvester, E. I. (2019). Empirical study on : Disclosure of corporate social responsibility on the financial perormance of public limited firms in Nigeria. European Journal of Accounting, Finance and Investment, 5 (1), 37-52.

Tilikaisiri, K. (2012). Corporate social responsibility and company performance. Ph. D Theses, Victoria University, Melbourne.

Werhane, P. H., & Freeman, R. E. (1999). Business ethics: the state of the art. International Journal of Management Reviews, 1(1), 1-16. https://doi.org/10.1111/1468-2370.00002

Zraqat, O., Zureigat, Q., Al-Rawashdeh, H. A., Okour, S. M., Hussien, L. F., & Al-Bawab, A. A. (2021). The effect of corporate social responsibility disclosure on market performance: Evidence from Jordan. The Journal of Asian Finance, Economics and Business, 8(8), 453-463.

Published
2023-08-01
How to Cite
Kantudu, A. S., Dandago, K. I., Yusuf, A., Maigoshi, Z. S., & Sulaiman, B. A. (2023). CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA: THE MODERATING EFFECT OF FOREIGN OWNERSHIP. Australian Finance & Banking Review, 7(1), 1-8. https://doi.org/10.46281/afbr.v7i1.2057
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper