Moderating Role of Earnings Management on the Relationship Between Social Responsibility Disclosure and Performance of Listed Oil and Gas Firms in Nigeria

  • Betty Nkiruka Akuchi Nnamdi Azikiwe University, Awka
  • Patrick Amaechi Egbunike Nnamdi Azikiwe University, Awka
Keywords: Earnings Management, Social Responsibility, Financial Performance, Return on Asset

Abstract

The study investigated the moderating role of earnings management on the relationship between social responsibility disclosure and financial performance of listed oil and gas firms in Nigeria. Specifically, the study determined the extent to which earnings management moderates the relationship between social responsibility disclosure and return on assets of listed oil and gas firms in Nigeria. The study used ex-post facto research design on the population of ten (10) listed Oil and gas firms in Nigeria. Purposive sampling was used to select six (6) firms. The data used for this study was secondary data extracted from the audited financial statements and annual reports of the sampled firms from 2012 to 2022. Moderated regression analysis was used to validate the hypothesis. It was found that earnings management significantly increases the relationship between social activities and the performance of listed oil and gas firms in Nigeria during the period under investigation. In conclusion, earnings management potentially enhances the perceived positive impact of social responsibility disclosure on financial performance, thereby leading to more favourable evaluations by stakeholders, investors, and analysts. Based on the result, it was recommended that listed oil and gas firms should adhere to ethical reporting principles and avoiding aggressive earnings management in order to ensure that the positive impact of their genuine social responsibility efforts is accurately reflected in financial performance metrics.

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Published
2023-09-06
How to Cite
Betty Nkiruka Akuchi, & Patrick Amaechi Egbunike. (2023). Moderating Role of Earnings Management on the Relationship Between Social Responsibility Disclosure and Performance of Listed Oil and Gas Firms in Nigeria. Central Asian Journal of Innovations on Tourism Management and Finance, 4(9), 46-57. Retrieved from https://cajitmf.centralasianstudies.org/index.php/CAJITMF/article/view/593
Issue
Vol 4 No 9 (2023): September 2023
Section
Articles

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