Assessment of Corporate Social Responsibility Disclosure on Return on Asset and Share Price of Seplat Energy Plc in Nigeria

Abstract

Corporate social responsibility (CSR) is considered an instrument for improving
a company's reputation with key stakeholders, generating revenue, and improving
bottom-line results; however, rather than corporate organizations, most studies
concentrated on Nigeria, a sovereign state. Therefore, it is imperative to investigate
the specific relationship between corporate social responsibility disclosure and its
effects on asset returns and share prices, with specific reference to an oil firm such
as Seplat Energy Plc in Nigeria. Nigeria. Ex-post facto or causal comparative
designs were utilized because the study's data came from the annual reports of
Seplat Energy Plc on the Nigerian Stock Exchange. Pearson Product Moment
Correlation (PPMC) and regression analysis were used to analyze this study. The
results showed that corporate social responsibility indices are positively related to
ROA, except size. Additionally, it was observed that the corporate social
responsibility index explains 46.8% of the variance in ROA. Because the size and
donation values on the t-calculated values of -1.089 and 0.620, respectively, are less
than the t-tabulated value of 1.833. Based on the research findings, Seplat
Petroleum Development Plc was found to have acknowledged the value of
corporate social responsibility (CSR) and to be fulfilling its commitments to both
internal and external stakeholders as well as the broader community. It was
recommended that a law be enacted that will fix the minimum percentage of profit
that organizations should spend on corporate social responsibility.