Corporate Social Responsibility and Financial Performance of Quoted Oil and Gas Companies in Nigeria

This study examines the impact of Corporate Social Responsibility (CSR) on the financial performance of quoted oil and gas companies in Nigeria, with a particular focus on the roles of Ethical Social Responsibility (ETSR) and Economic Social Responsibility (ECSR). Using data from ten oil and gas firms listed on the Nigerian Stock Exchange for the period 2013 to 2023, the study employs Pooled Ordinary Least Squares (POLS) and Ordinary Least Squares (OLS) regression analyses to assess the relationship between CSR dimensions and financial performance, measured by Profit After Tax (PAT). The results revealed that ECSR has a significant positive impact on both PAT. ETSR, however, shows a marginally significant negative relationship with PAT, suggesting that while it may enhance long-term sustainability, it could reduce short-term profitability. The findings underscore the importance of prioritizing economic responsibilities while strategically managing ethical obligations to achieve a balance between short-term financial gains and long-term sustainability. The study concludes with recommendations for oil and gas companies to optimize their CSR strategies and leverage firm-specific characteristics to enhance overall financial performance.