OIL AND GAS ACCOUNTING PRACTICES AND IMPLICATIONS FOR CORPORATE SOCIAL RESPONSIBILITY

Tolani Agboola Hassan, Gabriel Taiwo Ogunwole

Abstract


 

 

Maximizing shareholders’ interests has traditionally dominated the corporate strategy of many organizations in times past. The apparent reason being that since the management (agents) runs the affairs of the organization on behalf of the owners (principals), the major interest of the latter (profit maximization) would often be considered paramount in order for the business to retain its capital.Hence, this study examined the implications of oil and gas accounting practices on their corporate social responsibility. The study raised two hypotheses and adopted ex-post factor method, while 10 years (2010-2019) annual reports of seven selected oil and gas companies listed on the Nigerian Stock Exchange were analysed, using content analysis, Pearson Product Moment Correlation Coefficient, and Simple Linear Regression analysis with the use of the Statistical Package for Social Scientists (SPSS 23.0). This study found that a significant relationship exists between accounting practices and corporate social responsibility of oil and gas companies in Nigeria, and also that corporate social sustainability disclosure of oil and gas companies in Nigeria significantly affects their financial performance. Hence, this study recommends that oil and gas companies in Nigeria should adopt the best accounting practices recommended by both the local and global financial reports regulatory bodies, so as to ensure the satisfaction of all stakeholders, which in turns would enhance their performance.

 

Keywords: Sustainability reporting, accounting practice, corporate social responsibility, oil and gas companies, financial performance.


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