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.