Effect of Human Capital Expenditures on Corporate Social Responsibility of Oil and Gas Firms in Nigeria
American Journal of Theoretical and Applied Business
Volume 5, Issue 4, December 2019, Pages: 102-112
Received: Sep. 7, 2019;
Accepted: Oct. 26, 2019;
Published: Nov. 5, 2019
Views 416 Downloads 97
Ubesie Madubuko Cyril, Department of Accountancy, Enugu State University of Science and Technology (ESUT), Enugu, Nigeria
Eneh Catherine Amoge, Department of Accountancy, Enugu State University of Science and Technology (ESUT), Enugu, Nigeria
Udeh Nkemdilim, Department of Accountancy, Enugu State University of Science and Technology (ESUT), Enugu, Nigeria
This study is to ascertain the effect of human capital expenditures on corporate social responsibility of oil and gas firms in Nigeria It spanned for the period of 10 years (2008-2017) and made use of secondary data extracted from the financial reports and accounts of the oil and gas firms selected for the period. The study adopted ex-post facto research design and employed the panel least squares multiple regression analysis. Findings of the study provided empirical evidence that human capital expenditures proxy by expenditure on salaries and wages, on education and training and expenditure on health have significant positive effect on Corporate Social Responsibility (CSR) of oil and gas firms in Nigeria. This implies that increases in volume of corporate social functions of the firms are associated with increases in spending on the human capital indices. Based on these findings, it was recommended among others that oil and gas firms should keep up in the corporate supports to the community since it helps in the growth of their firms and ensure good salary pay structure for their workers to motivate them in community supports.
Ubesie Madubuko Cyril,
Eneh Catherine Amoge,
Effect of Human Capital Expenditures on Corporate Social Responsibility of Oil and Gas Firms in Nigeria, American Journal of Theoretical and Applied Business.
Vol. 5, No. 4,
2019, pp. 102-112.
Spence, D. B. (2010). Corporate Social Responsibility in the Oil and Gas Industry: The Importance of Reputational Risk. Chicago-Kent Law Review, 86 (1), 59-85.
Ismail, M. (2009). Corporate social responsibility and its role in community development: An international perspective. Journal of International Social Research, 2 (9), 199-209.
Eshna, V. (2017). Financial performance: Understanding its concepts and importance. Retrieved online from https://www.simplilearn.com/financial-performance-rar21-article on 20th September, 2018.
Uppugunduri, P. (2016). Corporate social responsibility towards sustainable growth. Indian Journal of Research, 5 (7), 70-72.
Manescu C (2010). Economic Implications of Corporate Social Responsibility and Responsible Investments, PhD Thesis, University of Gothenburg, School of Business, Economics and Law.
Mogaka M. M. (2016). Effect of Corporate Social Responsibility on Financial Performance in the Telecommunication Industry in Kenya. University of Nairobi.
K. Rama Mohana Rao & Fenaye Kassa Hailu (2016). Environmental Corporate Social Responsibility of Brewery Firms in Ethiopia. International Journal of Applied Research. 2 (4): 1-7.
Shehu A. (2015). Corporate Social Responsibility and Financial Performance of Quoted Conglomerates in Nigeria. Ahmadu Bello University.
Margret Wanjiru Wambugu & Abdulatif Essajee (2016). The Effect of Voluntary Financial Disclosures on the Stock Returns of Firms Quoted on the Nairobi Securities Exchange. International Journal of Finance and Accounting. 1 (1), 2016.
Gayathnisank, K. (2015), Corporate social responsibility and sustainable development. India’s most trusted online law library, legal services, India.
Umoren A. O., Ogbari M. E. & Atolagbe T. M. (2016). Corporate Social Responsibility and Firm Performance: A Study of Listed Firms in Nigeria. In: ICAN 2nd Annual International Academic Conference on Accounting and Finance, 18th to 20th May, 2016, Lagos.
Odetayo, T. A., Adeyemi, A. Z. &Sajuyigbe, A. S. (2014). The impact of corporate social responsibility on profitability of Nigeria banks. International Journal of Academic Research in Business and Social Sciences, 4 (8), 252-263.
Mgbame C. O., Chijioke-Mgbame M. A., Yekini S. & Yekini C. K. (2017). Corporate Social Responsibility Performance and Tax Aggressiveness. Journal of Accounting and Taxation. 9 (8), 101-108.
Jones T. (1995). Instrumental Stakeholder Theory: A synthesis of ethics and economics. Academy of Management Review. 20, 404-37.
Dibia N. O. & Onwuchekwa J. C. (2015). Determinants of Environmental Disclosures in Nigeria: A case stusy of Oil and Gas Companies. International Journal of Finance and Accounting. 4 (3): 145-152.
Watts R. L. & Zimmermann J. L. (1978). Towards a Positive Theory of the Determination of Accounting Excuses. The Accounting Review. 5 (1): 112-134.
Beurden, Pieter & Gossling, Tobias (2008). The Worth of Values: A literature review on the Relation between Corporate Social and Financial Performance. Journal of Business Ethics.82. 407-424.
Wu M. (2006). Corporate Social Performance, Corporate Financial Performance, and Firm Size: A meta-analysis. Journal of American Academy of Business, Cambridge. 8 (1), 163-171.
Allouche J. & Laroche P. (2005). A meta-analytical investigation of the relationship between corporate social and financial performance. Revenue de Gestion des Ressources Humaines. 57 (1), 8-41.
Orlitzky M., Schmidt F. & Rynes S. (2003). Corporate Social and Financial Performance: a meta-analysis. Organizational Studies. 24, 403-41
Perera, A. &Thrikawala, S. (2012). Impact of human capital investment on firm financial performances: An empirical study of companies in Sri Lanka. IPEDR, 54 (3).
Onyekwelu, U. L. F., Osisioma, B. C. &Ugwuanyi, U. B. (2015). Impact of human capital accounting on corporate financial performance. European Journal of Accounting Auditing and Finance Research, 3 (5), 90-107.
Snježana, P., Željana, A. B. &Ivana, T. (2017). An analysis of human capital investments, profitability ratios and company features in the EU. Croatian Operational Research Review, 167-180.
Ezejiofor, R. A., John-Akamelu, R. C. & Iyidiobi, F. C. (2017). Appraisal of human resource accounting on profitability of corporate organization. Science Publishing Group, 6 (1), 1-10.
Lan, J. & Munro, A. (2012). Environmental compliance and human capital: Evidence from Chinese Industrial Firms. National Graduate Institute for Policy Studies, 1-27.
Olayemi, S. O. (2012). Human capital investment and industrial productivity in Nigeria. International Journal of Humanities and Social Science, 2 (16), 298-307.
Nguyen, T., Nguyen, A., Locke, S. &Reddy, K. (2017). Does the human capital of board directors add value to firms? Evidence from an Asian market. Cogent Economics & Finance, 1-17.
Ukenna, S., Ijeoma, N., Anionwu, C. &Olisa, M. C. (2010). Effect of investment in human capital development on organizational performance: Empirical examination of the perception of small business owners in Nigeria. European Journal of Economics, Finance and Administrative Sciences, 94-107.
Omodero, C. O., Alpheaus, O. E. & Ihendinihu, J. U. (2016). Human capital investment and industrial productivity in Nigeria. International Journal of Interdisciplinary Research Methods, 3 (4), 14-27.
Kharal, M., Zai-ur-Rehman, M., Abrar, M., & Khan, M. S. (2014). Intellectual capital and firm performance: An empirical study on the oil and gas sector of Pakistan. International Journalof Accounting and Financial Reporting, 4 (1).
Bassey, B. E., &Tapang, A. T. (2012). Capitalized human resources cost and its influence on corporate productivity: A study of selected companies in Nigeria. International Journal of Financial Research, 3 (2), 48-59.
Anumudu, C. N. (2010). Effect of human capital on labour productivity in manufacturing industries in Enugu and Anambra States. Degree of Doctor of Philosophy in Economics, 1-152.