CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA: MODERATING EFFECT OF BOARD SIZE

Abstract

Corporate social responsibility is the way through which firms discharges their responsibilities to the members of its immediate community where they operate their business in order to have good corporate citizen. This study investigates the moderating effects of board sizes on the relationship between Corporate social responsibility and financial performance of listed oil and gas companies in Nigeria. The study examines the effect of corporate social responsibility and financial performance of listed oil and gas companies in Nigeria. The study also examines whether board moderates the relationship between corporate social responsibility and financial performance of listed oil and gas companies in Nigeria. Data was collected from secondary source (annual reports and accounts) of listed oil and gas companies in Nigeria from 2005-2019. Data were analyzed using regression through the use of STATA version 14. Ordinary Least Square, Fixed and Random effects were adopted for the study. The study found that the CSR is positive and significantly related to financial performance. On the interaction variables, board size has positive and significant moderating effect on the relationship between education and financial performance but negative and insignificant moderating effect on the relationship between health and financial performance. The study recommends that oil and gas companies should increase their spending on education and health since they have positive effects on their financial performance. Also, they should ensure higher number of members on their board so as to enhance their financial performance.