IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i12p981-1004.html
   My bibliography  Save this article

Accounting Perspective of Social Footprint Disclosure and its Implication on Firm’s Value of Selected Oil and Gas Companies in Nigeria

Author

Listed:
  • Eshiett Philip Kendy

    (Department Of Accounting, Faculty Of Management Sciences, Akwa Ibom State University, Obio Akpa Campus, Oruk Anam, Akwa Ibom State)

  • Dr Dorathy Akpan

    (Department Of Accounting, Faculty Of Management Sciences, Akwa Ibom State University, Obio Akpa Campus, Oruk Anam, Akwa Ibom State)

  • Joseph Ime Edet

    (Department Of Accounting, Faculty Of Management Sciences, Akwa Ibom State University, Obio Akpa Campus, Oruk Anam, Akwa Ibom State)

Abstract

This study examined the disclosure of social footprint on firms’ value in Nigeria. In other to achieve the targeted objective, perceptual data on social footprint and firms’ value were collected from seven (7) oil and gas firms listed in the Nigerian Exchange Group(NEG) from 2012 to 2021. The 7 companies selected formed a sample representation of the population and also created 70 observations as panel data. The sampling technique used for this study was non-probability sampling since the study data was secondary data, and also purposive and quantitative. Social footprint which is the independent variable was proxy as Community disclosure (COMD), employee relation disclosure (EMPD), and customer complaint disclosure (CCCD), while firm value (the dependent variable), was measured using Tobin Q (TOBQ). Findings indicate that community disclosure significantly improves the firm value of listed oil and gas firms in Nigeria. Therefore, this result implies that positive variations in the firm value of listed companies in Nigeria are accounted for by community-related information disclosed by such firms. More so, the result of Hypothesis Two tested shows that employee relation disclosure insignificantly decreases the firm value of listed oil and gas firms in Nigeria. Therefore, employee relation disclosure does not decrease the value of listed firms in Nigeria. This also supports the view that a good association with employees can result in better productivity, thereby reducing lawsuits and related expenses that will ultimately lead to higher profit. Furthermore, the result obtained from hypothesis three shows that customer complaints disclosure significantly improves the firm value of listed oil and gas firms in Nigeria. This implies that positive variations in firms’ value of listed companies in Nigeria are also accounted for by customer complaints disclosures. Overall, these findings suggest that responsible business practices toward primary stakeholders can be profitable and beneficial to firms in Nigeria.

Suggested Citation

  • Eshiett Philip Kendy & Dr Dorathy Akpan & Joseph Ime Edet, 2023. "Accounting Perspective of Social Footprint Disclosure and its Implication on Firm’s Value of Selected Oil and Gas Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(12), pages 981-1004, December.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:12:p:981-1004
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-12/981-1004.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/accounting-perspective-of-social-footprint-disclosure-and-its-implication-on-firms-value-of-selected-oil-and-gas-companies-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nadeem Iqbal & Naveed Ahmad & Nauman Ahmad Basheer & Muhammad Nadeem, 2012. "Impact of Corporate Social Responsibility on Financial Performance of Corporations: Evidence from Pakistan," International Journal of Learning and Development, Macrothink Institute, vol. 2(6), pages 107-118, December.
    2. David Mathuva, 2015. "Corporate governance, performance and employee disclosure in cooperatives: an empirical test of legitimacy and signalling theories," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 4(3), pages 189-206.
    3. Kumar, V. & Pozza, Ilaria Dalla & Ganesh, Jaishankar, 2013. "Revisiting the Satisfaction–Loyalty Relationship: Empirical Generalizations and Directions for Future Research," Journal of Retailing, Elsevier, vol. 89(3), pages 246-262.
    4. Zhongtian Li & Shamima Haque & Ellie (Larelle) Chapple, 2018. "Legitimising corporate reputation in times of employee distress through disclosure," Accounting Research Journal, Emerald Group Publishing Limited, vol. 31(1), pages 22-45, May.
    5. Supriti Mishra & Damodar Suar, 2010. "Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?," Journal of Business Ethics, Springer, vol. 95(4), pages 571-601, September.
    6. Adams, Carol A. & Harte, George, 1998. "The changing portrayal of the employment of women in British banks' and retail companies' corporate annual reports," Accounting, Organizations and Society, Elsevier, vol. 23(8), pages 781-812, November.
    7. R Day & T Woodward, 2004. "Disclosure of information about employees in the Directors’ report of UK published financial statements: substantive or symbolic?," Accounting Forum, Taylor & Francis Journals, vol. 28(1), pages 43-59, March.
    8. Fitra Roman Cahaya & Stacey Porter & Greg Tower & Alistair Brown, 2015. "The Indonesian Government’s coercive pressure on labour disclosures," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 6(4), pages 475-497, November.
    9. Sepideh Parsa & Ian Roper & Michael Muller-Camen & Eva Szigetvari, 2018. "Have labour practices and human rights disclosures enhanced corporate accountability? The case of the GRI framework," Accounting Forum, Taylor & Francis Journals, vol. 42(1), pages 47-64, March.
    10. Yan-Leung Cheung & Kun Jiang & Billy Mak & Weiqiang Tan, 2013. "Corporate Social Performance, Firm Valuation, and Industrial Difference: Evidence from Hong Kong," Journal of Business Ethics, Springer, vol. 114(4), pages 625-631, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bouten, Lies & Everaert, Patricia, 2015. "Social and environmental reporting in Belgium: ‘Pour vivre heureux, vivons cachés’," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 33(C), pages 24-43.
    2. Grosser, Kate & Moon, Jeremy, 2008. "Developments in company reporting on workplace gender equality?," Accounting forum, Elsevier, vol. 32(3), pages 179-198.
    3. Bilal Fayiz Omar & Nidal Omar Zallom, 2016. "Corporate social responsibility and market value: evidence from Jordan," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 14(1), pages 2-29, July.
    4. Muhammad Ikram & Abdul Qayyum & Omer Mehmood & Jahanzaib Haider, 2020. "Assessment of the Effectiveness and the Adaption of CSR Management System in Food Industry: The Case of the South Asian versus the Western Food Companies," SAGE Open, , vol. 10(1), pages 21582440199, January.
    5. Isabel‐María García‐Sánchez & Valentina Minutiello & Patrizia Tettamanzi, 2022. "Gender disclosure: The impact of peer behaviour and the firm's equality policies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 385-405, March.
    6. Mäkelä, Hannele, 2013. "On the ideological role of employee reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(4), pages 360-378.
    7. Musah Mohammed Saeed & Mahalakshmi Mudliar & Manisha Kumari, 2023. "Corporate social responsibility and financial performance nexus: Empirical evidence from Ghana," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 2799-2815, November.
    8. Albertina Paula Monteiro & Beatriz Aibar-Guzmán & María Garrido-Ruso & Cristina Aibar-Guzmán, 2021. "Employee-Related Disclosure: A Bibliometric Review," Sustainability, MDPI, vol. 13(10), pages 1-38, May.
    9. Emmanuel Anyigbah & Yusheng Kong & Bless Kofi Edziah & Ahotovi Thomas Ahoto & Wilhelmina Seyome Ahiaku, 2023. "Board Characteristics and Corporate Sustainability Reporting: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(4), pages 1-26, February.
    10. Kalpana Tokas & Kartik Yadav, 2023. "Foreign Ownership and Corporate Social Responsibility: The Case of an Emerging Market," Global Business Review, International Management Institute, vol. 24(6), pages 1302-1325, December.
    11. Satyajit Majumdar & Gordhan K. Saini, 2016. "CSR in India: Critical Review and Exploring Entrepreneurial Opportunities," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 2(1), pages 56-79, January.
    12. Dambrin, Claire & Lambert, Caroline, 2012. "Who is she and who are we? A reflexive journey in research into the rarity of women in the highest ranks of accountancy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(1), pages 1-16.
    13. Ian Sutherland & Youngseok Sim & Seul Ki Lee & Jaemun Byun & Kiattipoom Kiatkawsin, 2020. "Topic Modeling of Online Accommodation Reviews via Latent Dirichlet Allocation," Sustainability, MDPI, vol. 12(5), pages 1-15, February.
    14. Patten, Dennis M., 2005. "The accuracy of financial report projections of future environmental capital expenditures: a research note," Accounting, Organizations and Society, Elsevier, vol. 30(5), pages 457-468, July.
    15. Ahrholdt, Dennis C. & Gudergan, Siegfried P. & Ringle, Christian M., 2019. "Enhancing loyalty: When improving consumer satisfaction and delight matters," Journal of Business Research, Elsevier, vol. 94(C), pages 18-27.
    16. Yu Jin Chang & Jae Wook Yoo, 2023. "How Does the Degree of Competition in an Industry Affect a Company’s Environmental Management and Performance?," Sustainability, MDPI, vol. 15(9), pages 1-11, May.
    17. Leonardo Becchetti & Emanuele Bobbio & Federico Prizia & Lorenzo Semplici, 2022. "Going Deeper into the S of ESG: A Relational Approach to the Definition of Social Responsibility," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    18. Pomirleanu, Nadia & Chennamaneni, Pavan Rao & Krishen, Anjala S., 2016. "Easy to please or hard to impress: Elucidating consumers' innate satisfaction," Journal of Business Research, Elsevier, vol. 69(5), pages 1914-1918.
    19. Soobaroyen, Teerooven & Ntim, Collins G., 2013. "Social and environmental accounting as symbolic and substantive means of legitimation: The case of HIV/AIDS reporting in South Africa," Accounting forum, Elsevier, vol. 37(2), pages 92-109.
    20. Russo, Ivan & Confente, Ilenia & Gligor, David M. & Autry, Chad W., 2016. "To be or not to be (loyal): Is there a recipe for customer loyalty in the B2B context?," Journal of Business Research, Elsevier, vol. 69(2), pages 888-896.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:12:p:981-1004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://www.rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.