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.