i AMNESTY, CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE OF LISTED DOWNSTREAM OIL COMPANIES IN NIGERIA
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Date
2016-01-07
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Publisher
Ahmadu Bello University Zaria
Abstract
In 2009, the federal government of Nigeria launched its amnesty programme for Niger Delta
region of the country to address the concerns of the communities that host the oil and gas
companies operating in the country. One of the matters arising since the launching is whether
the programme has helped in the restoration of peace and security in the region to enable the
companies operate optimally, realise their full potentials and increase their productivity and
consequently their financial performance. Another question relates to the extent to which the
programme motivates the companies to make more effort to satisfy the communities through
increased corporate social responsibility (CSR) activities. This study examined the effect of
amnesty and CSR on the financial performance of listed downstream oil companies in
Nigeria. The study formulated three hypotheses with the third hypothesis focusing on the
moderating effect of firm size on the extent to which amnesty and CSR affect the financial
performance of the companies over the period of 10 years from 2004 to 2013. The robust
regression result based on the annual data collected from five (5) companies revealed that
both amnesty and CSR have significant effect on the financial performance of the companies.
The result also revealed a high level of interacting effect of size on amnesty and CSR. Based
on the findings, the study recommended among other things that the federal government
should continue with the implementation of the amnesty programme and initiate even other
similar interventions as means of maintaining or restoring peace within the Niger Delta and
other regions of the country where such interventions are needed. The study also
recommended that the management of oil companies should continue to execute more CSR
programmes in order to guarantee safety and security of personnel and equipment that are
used to generate higher profits.