Corporate Social Responsibility and Financial Sustainability of Oil and Gas Firms in Nigeria

Aims: The study examined the effect of corporate social responsibility on financial sustainability of quoted oil and gas firms in Nigeria. Study Design: The research work adopted for the study ex-post facto research design. Secondary data spanning 2009 to 2020 was sourced and collated from financial statement of oil and gas firms annual report in Nigeria and Nigeria Stock Exchange factbook. Place of Study: Department of Accountancy, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Methodology: The data was analyzed employing the Pearson coefficient correlation and least square regression technique. Results: The study revealed that corporate social responsibility has a significant positive effect on net profit margin and return on asset of quoted oil and gas firms in Nigeria at 5% level of significance. Conclusion: Given the integral role the Oil and Gas sector plays in Nigeria, this paper showed the importance of corporate social responsibility in ensuring the financial sustainability of corporations in the Nigerian Oil and Gas industry.

EFFECT OF CORPORATE SOCIAL RESPONSIBILITY ON INVESTMENT EFFICIENCY OF QUOTED OIL AND GAS FIRMS IN NIGERIA

This study examined effect of corporate social responsibility (CSR) on investment efficiency of quoted oil and gas firms in Nigeria. The study employed Ex post facto research design. The sample size of seven (7) oil and gas firms was derived from the population of the quoted twelve (12) oil and gas firms in Nigeria. Judgmental approach was employed during the sampling procedure. The study used secondary data sourced from the annual reports of the quoted oil and gas firms in Nigeria Stock Exchange fact books of official lists covering a ten-year period (2010-2019). The study employed Multiple Regression Model as the technique of data analysis with the aid of SPSS 23 statistical software. Analysis of findings showed that CSR charitable donation expenditure, CSR expenditure on education and CSR societal expenditure reveal significant relationship with investment efficiency of oil and gas firms in Nigeria. Nevertheless, CSR health expenditure and CSR environmental expenditure show insignificant effect on investment efficiency of oil and gas firms in Nigeria. The study also reveals that there is significant relationship between CSR sports expenditure and investment efficiency of oil and gas firms in Nigeria. With respect to the findings, the study recommends that the oil and gas firms should boost and monitor their CSR charitable donation expenditure, CSR on health expenditures, CSR environmental and CSR sport expenditures and observe them closely since they reveal negative effect. The study also recommends that CSR expenditure on education and CSR societal expenditure should be upheld and sustained since they reveal significant positive effect on investment efficiency of oil and gas firms in Nigeria.

Fracking Disclosure, Collateral Value, and the Mortgage Market

This paper examines whether laws requiring oil and gas firms to disclose the chemicals used in their fracking operations affect the mortgage lending activity for properties located in nearby areas. I hypothesize and find that the disclosure mandate reduces uncertainty about the value of housing collateral and subsequently increases 1) the probability of obtaining a mortgage by 2.5 percentage points (pp) and 2) loan-to-value by 2.2 pp. My main analyses exploit the variation in the location of properties relative to fracking wells. Cross-sectional tests that exploit heterogeneity in drinking water sources and the content of firm disclosures further substantiate my inferences and mitigate endogeneity concerns. These findings suggest that disclosure regulation for oil and gas firms affects housing collateral values, thereby impacting the mortgage market.

Material Requirement Planning and Supply Chain Performance of Oil and Gas Firms in Rivers State, Nigeria

Purpose: This study examined the relationship between material requirement planning and supply chain performance of Oil and Gas firms in Rivers State, Nigeria. Methodology: The study adopted an explanatory research design with a causal type of investigation. Both primary and secondary methods of data collection were used to obtain relevant data for analysis. The instrument of data collection employed was the questionnaire. The study population comprised of two hundred and ninety-three (293) oil and gas servicing firms operating in Rivers State as enlisted in the Nigerian oil and gas industry annual report (2020). The sample size for the study comprised 149 oil and gas firms in Port Harcourt, Rivers state. The sample size was determined using the Taro Yamene formula. Furthermore, the researcher selected one management staff from each of the oil and gas firms operating in Rivers State as respondents for the study hence a total of one hundred and forty nine (149) respondents were used for the study. The data was analyzed using the Pearson’s Product Moment Correlation statistic through the aid of statistical packages for social science version 23.0. Findings: The result of the study revealed the existence of significant and positive relationship between material requirement planning and supply chain performance of oil and gas firms in Rivers State. Recommendation: The researcher concluded that material requirement planning affect supply chain performance of oil and gas firms in Rivers state and therefore recommended that managers of oil and gas firms should strategically manage their material and inventory processes in other to improve their supply chain performance.

Using Earnings Calls to Understand the Political Behavior of Major Polluters

The role that private actors play in accelerating or preventing progressive climate policy and true decarbonization is a core research interest of global environmental politics. Yet scholars have struggled to measure the political behavior of multinational firms due to lack of transparency about their activities and inconsistency in reporting requirements across jurisdictions. In this research note, we present a new data source—firms’ earnings calls—that scholars might use to better understand the political behavior of major multinational polluters. To illustrate the value of earnings calls as a data source, we construct an original data set of all earnings calls made between 2005 and 2019 by major oil and gas firms. We then code these transcripts, demonstrating that although firms can be classified as more or less pro-climate, there is little evidence of the industry’s public acceptance of decarbonization. These unique data could permit researchers to explore important questions about climate politics, the evolution of private governance, and the relationship between policy and firms’ political behavior. Moreover, we suggest extensions of our approach, including other multinational industries that are amenable to this type of analysis.

CUSTOMERS PERCEPTION OF SERVICE QUALITY OF NNPC RETAIL OUTLETS IN ENUGU URBAN, NIGERIA

Service quality is becoming more crucial for oil and gas firms to maintain their market shares. This study identified the perception of customers of petroleum services firm (NNPC) through the relationship of five factors along with the demographic characteristics of customers. A total of 304 retail customers who patronize petroleum filling stations have been taken for the study and convenience sampling method was adopted for collecting a sample. Factor analysis revealed five factors and results of analysis of variance (ANOVA) indicated that while age, gender, occupation have no significant effect on customer perception of service quality income and qualification on the contrary differs significantly. The paper therefore recommends among other things that, the concepts and principles of total quality management (TQM) are recommended for holistic study, in addition to contemporary marketing management issues such as relationship marketing, value analysis and permission marketing, among others. Efforts should also be made by petroleum marketers to understand the relevant factors that affect both clients’ behaviours so as to understand the strategic options to be adopted to cope with such behaviours. <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0875/a.php" alt="Hit counter" /></p>

LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA

The purpose of this paper is to figure out the link between liquidity and profitability, as well as the impact of liquidity on profitability. Ten listed companies with a bigger market share in the oil and gas sector of the Nigerian economy were subjected to a fixed panel regression study. Secondary data was gathered for ten years, from 2011 to 2020, from their published annual reports. Profit after tax (PAT), Return on Asset (ROA), and Return on Equity (ROE) were used to determine profitability (ROE). Internal liquidity variables such as equity, debt, and sales were utilized to determine the behavior of the dependent variable, but external elements such as lending interest rate and exchange rate were employed to further explain profitability behavior. The data were analyzed using a multiple regression approach. The findings reveal that debt has a significant negative impact on companies' profitability. Similarly, equity capital, as well as retained earnings, are more beneficial to firms than the debt financing of the oil and gas sector. The study, therefore, recommends that oil and gas firms should boost their equity capital, improve their revenues, increase their retain earnings, and reduce debt financing to enable them to generate more wealth for shareholders.

Indonesia will struggle to attain climate goals

Significance In July, it expressed optimism about achieving net-zero emissions by “2060 or sooner”. This will require a phasing out of coal-fired power plants, currently the dominant source of energy in the country. Impacts Jakarta may include its 2060 target explicitly in future updates of its Nationally Determined Contribution to action against climate change. Indonesian oil and gas firms will step up opposition to the government’s plans to introduce a carbon tax. The government will redouble commitment to reforestation efforts.

Markovian Approach to Stock Price Modelling in the Nigerian Oil and Gas Sector

The study investigates the stock price movement of quoted Nigerian oil and gas firms using the Markovian model. Specifically, the study estimates the change in likelihoods and steady-state distribution of the share prices of the firms to determine the average time spent by the share price to move to another state and the turnover rate of the selected stocks. Markov chain-based stochastic modelling approach was employed by using the daily closing share prices of all the seven oil and gas firms quoted on the Nigerian Stock Exchange from April 2017 to January 2020. The study finds that the transition probabilities and the steady-state distribution of all the firms are stationary at first-order, implying that chain depends on the previous state. The steady-state probabilities of all the firms examined exhibit relatively high price stability in the long run. The study recommends that investors with diverse attitudes to risk-taking can explore the estimated long-run prospect of the investigated stocks in making guided investment decisions.