Corporate Social Responsibility and Financial Performance in Nigerian Quoted Oil and Gas Industries
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Date
2020-09
Authors
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Publisher
Imo State University, Owerri
Abstract
The paper investigated the direction of causality between CSR and financial performance
of the quoted oil and gas industry. The data set contains ten years from 2014 to 2018 of
firm specification variables. Data were gathered from audited financial reports of 8
purposively selected firms from quoted companies in the Oil and Gas industry, Nigeria
Stock Exchange (NSE) Factbook and statistical Bulletin of the Central Bank of Nigeria.
Granger causality test model was employed to investigate the direction of causality
between Corporate Social Responsibility and Financial Performance. The result indicated
that there was no causal relationship between corporate social responsibility and Return
on Assets (χ2
=3.479, p>0.05). Return on Asset does not Granger cause corporate social
responsibility (χ2 =2.279, p>0.05). Also, corporate social responsibility does not granger
cause Return on Asset. The study concluded that significant feedback did not exist in any
direction of causality between corporate social responsibility and profitability, but there is
a positive relationship between them.
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Keywords
Corporate social responsibility, Granger causality,, Nigeria, Profitability