Effect of Human Capital Expenditures on Corporate Social Responsibility of Oil and Gas Firms in Nigeria

Ubesie Madubuko Cyril,Udeh Nkemdilim,Eneh Catherine Amoge

doi:10.11648/j.ajtab.20190504.14

Abstract

This study is to ascertain the effect of human capital expenditures on corporate social responsibility of oil and gas firms in Nigeria It spanned for the period of 10 years (2008-2017) and made use of secondary data extracted from the financial reports and accounts of the oil and gas firms selected for the period. The study adopted ex-post facto research design and employed the panel least squares multiple regression analysis. Findings of the study provided empirical evidence that human capital expenditures proxy by expenditure on salaries and wages, on education and training and expenditure on health have significant positive effect on Corporate Social Responsibility (CSR) of oil and gas firms in Nigeria. This implies that increases in volume of corporate social functions of the firms are associated with increases in spending on the human capital indices. Based on these findings, it was recommended among others that oil and gas firms should keep up in the corporate supports to the community since it helps in the growth of their firms and ensure good salary pay structure for their workers to motivate them in community supports.

Highlights

Background to the StudyElementary economics has made it clear that no business can survive or thrive without the entrepreneur
The Ordinary Least Square (OLS) technique was employed in analyzing the data and the results indicated that personnel benefit costs have positive and significant effect on Profitability, explaining about 73.9% of the variations in Profit After Tax of firms in Nigeria
Statistical support for the existence of a positive and significant relationship between human resource costs and the performance of Nigerian companies A positive impact of intellectual capital on the organizational performance and value of the companies in Pakistan. a significant increase in firms’ net worth when investments on human capital are treated as assets and capitalized as against the current practice where such expenditures are treated as mere revenue expenses thereby leading to gross undervaluation of firms’ Statement of Financial Position (Balance Sheet) and the Income Statement (Profit and Loss Account) Personnel benefit costs have positive and significant effect on profitability, explaining about 73.9% of the variations in Profit After

Summary

Introduction

Background to the StudyElementary economics has made it clear that no business can survive or thrive without the entrepreneur. Entrepreneur which stands for human person is singled out as the most essential of the factors of production. And naturally, companies are supposed to maintain a healthy, symbiotic relationship with the locality of community of operation by making significant contributions in support of the locality or community development. As it is said that one good turn deserves another, the community in question ought to reciprocate the gesture especially by providing internal peace and security of both properties and lives. This crucial provision of the community goes a long way towards promoting the overall performance of the organizations

Objectives

Methods

Results

Discussion

Conclusion