ENVIRONMENTAL RESPONSIBILITY AND FIRM FINANCIAL PERFORMANCE: EVIDENCE FROM INTERNATIONAL OIL COMPANIES IN NIGER DELTA
Nosakhare Ikponmwosa () and
Darlington Osaremwinda Ogbeide ()
Additional contact information
Nosakhare Ikponmwosa: Department of Banking and Finance, Faculty of Management Sciences, University of Benin, Benin City, Nigeria
Darlington Osaremwinda Ogbeide: Department of Business Administration, Faculty of Management Sciences, University of Benin, Benin City, Nigeria
Oradea Journal of Business and Economics, 2021, vol. 6, issue 1, 8-20
This study examines the relationship between environmental responsibility and financial performance of international oil companies in Niger Delta region of Nigeria. In pursuance of this, a sample of twelve (12) international oil firms was used for the study. Secondary data were obtained from the audited annual financial reports of the selected companies and Federal Ministry of Environment covering the period of 2009 to 2018. The data were analyzed using descriptive statistics, correlation analysis, panel causality test and fixed effect, selected as the appropriate strategy after using the Hausman test. Based on the data analysis, the study reveals that there is a bi-directional relationship between environmental responsibility and firmsâ€™ financial performance. The study further reveals that there is a positive relationship between environmental responsibility and firmsâ€™ financial performance. When environmental responsibility interacts with corporate governance, the impact is found to have a significant positive relationship with firmsâ€™ financial performance. The study also finds that growth opportunities and firm size are positively and significantly related to firmsâ€™ financial performance. Based on the findings, the study recommends effective regulation, strong institutional mechanism and good corporate governance structures to enforce or engender environmental sustainability and compel firms to adopt the culture/strategy of sustainable finance. Such strategy will alleviate the curse of dependency and poverty that comes with the destruction of the environment and the means of sustenance of the people in oil producing communities.
Keywords: Corporate Governance; Environmental Responsibility; Environmental Sustainability; Firmsâ€™ Financial Performance; International Oil Companies; Niger Delta (search for similar items in EconPapers)
JEL-codes: C23 G30 N57 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://ojbe.steconomiceuoradea.ro/wp-content/uploa ... OJBE-61_fin-8-20.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ora:jrojbe:v:6:y:2021:i:1:p:8-20
Access Statistics for this article
More articles in Oradea Journal of Business and Economics from University of Oradea, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Tomina SAVEANU ().