




































AUSTRALIAN FINANCE & BANKING REVIEW 7(1) (2023), 1-8 

 

 1 

                       FINANCE AND BANKING 

                                                                  AFBR VOL 7 NO 1 (2023) P-ISSN 2576-1196  E-ISSN 2576-120X 
                                                  

        Available online at https://www.cribfb.com 
                                                                                                                                           Journal homepage: https://www.cribfb.com/journal/index.php/afbr 

                                                                                                                                                                                                   Published by CRIBFB, USA 

CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND 

VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA: 

THE MODERATING EFFECT OF FOREIGN OWNERSHIP  

 
 Aliyu Sulaiman Kantudu (a)1   Kabiru Isa Dandago (b)   Abubakar Yusuf (c)   Zaharaddeen Salisu 

Maigoshi (d)   Bashir Ali Sulaiman (e)    

 

(a) Department of Accounting, Bayero University Kano, Nigeria; E-mail: aliskantudu@gmail.com 
(b) Department of Accounting, Bayero University Kano, Nigeria; E-mail: kidandago@gmail.com 
(c) Department of Accounting, Gombe State University, Nigeria; E-mail: abubakaryusufgwani@gsu.edu.ng  
(d) Department of Accounting, Bayero University Kano, Nigeria; E-mail: deenimadabo@gmail.com 
(e) Department of Taxation, Federal University, Dutse-Nigeria; E-mail: bashirali0@gmail.com 
 

 
A R T I C L E I N F O 
 

 

Article History: 
 

Received: 1st May 2023 

Revised: 30th June; 10th  July 2023 
Accepted: 20th July 2023   

Published: 1st August 2023   

 
Keywords: 

 

CSRD, Foreign Ownership,  

Firm Value 

 

 
JEL Classification Codes: 

  

O16 
 
  

 
A B S T R A C T 

 
This study examines the moderating effect of foreign ownership on the relationship between corporate 
social responsibility disclosure and the value of listed oil and gas companies in Nigeria. This study 

adopted an explanatory research design to achieve this objective using secondary data collected from 

annual reports and accounts of the sampled companies for four years (2018-2021). The study employs 

multiple regression using panel-corrected standard error (PCSE) to analyze data for the study. Findings 

indicate that corporate social responsibility disclosure has a positive significant impact on firm value. 

Results also revealed that foreign ownership has a positive but insignificant impact on firm value. 

Furthermore, on the interaction effect of foreign ownership on the relationship between corporate social 
responsibility disclosure and firm value, the result indicates that foreign ownership has moderated the 

relationship between corporate social responsibility disclosure and the value of listed oil and gas 

companies in Nigeria by strengthening the existing relationship. The findings of this study encourage 

more investment from foreign investors to increase the disclosure of CSR to enhance the value of listed 

oil and gas companies in Nigeria. Finally, the study recommends that the management of listed oil and 

gas companies should diversify to attract more foreign investors to improve the value of their companies. 

  
 

© 2023 by the authors. Licensee CRIBFB, USA. This article is an open-access article distributed 

under the terms and conditions of the Creative Commons Attribution (CC BY) license 

(http://creativecommons.org/licenses/by/4.0).                           

 

INTRODUCTION 

Corporate Social Responsibility Disclosure (CSRD) has continue to gained wider recognition in different sectors of the 

economic across the globe especially within the context of the stakeholder-shareholder debate. The main idea behind 

“shareholder perspective” is that the responsibility of managers is only to serve the interests of shareholders in the best 

possible way using firms’ resources to increase their wealth by maximizing profits (Jensen, 2001). However, the 

“stakeholder perspective” argued that besides shareholders, other groups of stakeholders are also affected by the activities 

of the organisation. Therefore, stakeholders need to be considered when making decision (Werhane & Freeman, 1999). 

Foreign investors being one of the major stakeholder’s in an organisation have much interest on company’s CSR activities. 

This is because foreign investors always prefer to invest in companies that are considered to be socially responsible where 

their investment would be more secured because of the cordial relationship that exit between the company and its diverse 

stakeholders. Hence, the need to disclosure information on CSR in order to inform various stakeholders how the company 

have responded to their social and environmental challenges coursed by the activities of the company.  

                                                      
1Corresponding Author: ORCID ID: 0009-0002-5358-6861 

© 2023 by the authors. Hosting by CRIBFB. Peer review under responsibility of CRIBFB, USA.  
https://doi.org/10.46281/afbr.v7i1.2057 

 

To cite this article: Kantudu, A. S., Dandago, K. I., Yusuf, A., Maigoshi, Z. S., & Sulaiman, B. A. (2023). CORPORATE SOCIAL RESPONSIBILITY 
DISCLOSURE AND VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA: THE MODERATING EFFECT OF FOREIGN OWNERSHIP. 

Australian Finance & Banking Review, 7(1), 1-8. https://doi.org/10.46281/afbr.v7i1.2057 

 

https://orcid.org/0009-0002-5358-6861
http://creativecommons.org/licenses/by/4.0/)
http://creativecommons.org/licenses/by/4.0/)
https://doi.org/10.46281/afbr.v7i1.2057
https://orcid.org/0000-0002-3655-0421
https://orcid.org/0009-0008-5869-1146
https://orcid.org/0000-0003-4514-8546
https://orcid.org/0009-0003-6830-1766


Kantudu et al., Australian Finance & Banking Review 7(1) (2023), 1-8 

 

2 

Furthermore, the role of business organisations in improving the life of various stakeholders cannot be 

underestimated because nowadays many corporate organisation engaged in social activities that are formally considered as 

the responsibility of government alone (Tilakasiri, 2012). The main objective of every corporate organizations is to 

maximize profit which could enhance the value of the firm, but that should not be at the expense of the society’s well-being. 

According to Carroll (1999), organization should act in a socially responsible manner, obey the rules, and respect code of 

corporate governance so as to be morally upright as a good corporate body.  

Nowadays the business paradigm has changed from maximization of shareholders’ wealth to maximization of 

stakeholders’ wealth. Unlike before many companies are force to practice CSR as a strategy to improve reputation and 

create good corporate image for the business in order to be sustainable. Furthermore, the objective of increasing firm value 

can be achieved with the help of disclosing information on CSR. This is due to the fact that many stakeholders place more 

value in companies that are socially friendly and committed in addressing issues that affect them. Therefore, it is only by 

disclosing information, stakeholders will be informed on the level of commitment and effort put in place in addressing their 

various demand. CSR help company to maintain good relationship with it various stakeholders which in the long run can 

affect the value of the company.   

Disclosing information on CSR involves extending the accountability of companies’ report beyond the traditional 

role of providing a financial reports to the owners of the capital (Mukthar, 2016) Thus, disclosure on CSR contained financial 

and non-financial information of companies’ social activities. More so, information on CSR cover many aspects of social 

activities carried out by the business operators. However, because of the increasing adverse effect of corporation on aspects 

of social life and the environment, many stakeholders call for investigation on  corporate’s activities and the extent to which 

its affect their  life and the environment. 

However, Mukhtar (2016) asserted that failure to disclose information on CSR is a signal for poor social 

performance. And the resulting effect will be loss of confidence by many stakeholders which is detrimental and will not 

only damage the good reputation of the company over the years but will result in loss of market share price and decrease in  

firm value. This study selected oil and gas industry because the nature of their activities have serious effects on the 

environment, as such oil and gas industry is one of the sectors that heavily invest on CSR projects in Nigeria, hence the need 

for this study. Therefore, the objective of this paper is to examine the relationship between CSRD and value of listed oil and 

gas companies in Nigeria with the moderating effect of foreign ownership. 

The remainder of the paper is arranged as follows: Section two provides literature review. Section three presents 

methodology of the study. Section four presents results and discussions while section five discusses, conclude and make 

recommendation. 

 

LITERATURE REVIEW 

There are quite  number of studies that examine the relationship between  CSRD and firm  value,  foreign ownership and 

firm value as well as the interactions effect of foreign ownership on the    relationship between CSRD and firm value. The 

review of the empirical studies were categories under three sub headings. Viz; CSRD and firm value, foreign ownership and 

firm value and finally CSRD, foreign ownership and firm value.  

 

CSRD and Firm value 

Several researches have been conducted by numerous researchers across the globe on the effect of corporate social 

responsibility disclosure on firm value. Some of these studies include the work of Zraqat, Zareigat, Rawashdeh, and Okour 

(2021) who determines the effect of CSRD on market performance of Amman Stock Exchange in Jordan for the period of 

six years 2014-2019. The study used secondary data obtained from the annual reports of the sample companies and analyzed 

using multiple regression technique. The found that CSRD has significant negative effect on market performance proxy by 

Tobin’s q. implying that disclosing information on CSR decreased the value of the firm and vice-versa.  

Emeka-Nwokeji (2019) examines the impact of corporate social responsibility disclosure on the market value of 

listed non-financial firms in Nigeria from 2006 to 2015. Secondary data were source from the annual report and account of 

93 sample companies and were analysed using multiple regression technique. The study found that social donation and 

investment in human capacity building, employee heath safety and welfare has significant positive effect on market value 

while charitable/philanthropic gift and job creation has insignificant negative effect on market value. The finding further 

reveals that CSRD as a whole shows significant positive effect on market value of non-financial firms in Nigeria during the 

study period. 

Similarly, Sylvester (2019) examines the impact of corporate social responsibility disclosure on performance of 

some selected firms in Nigeria.  The study used secondary data extracted from the annual report and account of the sample 

companies for the period of 5 years from 2008-2012. Ordinary least square were employed as a method of data analysis and 

the results reveals that CSRD has positive and significant effect on performance. Implying that stakeholders value companies 

that are socially responsible. 

Nguyen, Dang, Vu, and Houng (2018) examines the impact of social and environmental disclosure on firm 

performance in Vietnam. Secondary data were extracted from the annual report and accounts of the sample companies over 

the study period. The study employed regression analysis as a technique for data analysis and the result reveals that social 

and environmental disclosure has significant positive impact on firm performance of some selected firms in Vietnam during 

the study period.  



Kantudu et al., Australian Finance & Banking Review 7(1) (2023), 1-8 

 

3 

Furthermore, Salisu, Sani, and Lawan (2018) investigates the relationship between CSRD and performance of 

listed conglomerate firms in Nigeria for the period of ten years 2007-2016. Secondary data were collected from the annual 

report and accounts of the sample companies and the study employed pool OLS as a technique for data analysis. The study 

found that CSRD has positive significant relation with the performance of listed conglomerate companies in Nigeria during 

the study period. 

However, Sopian and Mulya (2018) examines the impact of CSRD on the value of listed companies in Indonesia. 

Secondary data were source from the annual report and accounts of the sample companies and were analyzed using multiple 

regression technique. The study document significant negative effect on firm value. This implies that investors may see 

CSR programme as a burden of the current year or in operating expenses and will have an impact directly with the decline 

of company’s revenue. 

From the above reviewed it can be summarized that studies on CSRD and firm value have been documented in the 

literature, although the findings are mixed. This is because while some studies documented positive effect of CSRD on firm 

value, others shows negative effect of CSRD on firm value. In view of the above, we hypothesized that 

 

There is positive relationship between CSRD and firm value 

 

Foreign ownership and Firm Value 

Empirical researches on ownership structure particularly foreign ownership have been conducted by many researchers both 

within and outside Nigeria. This include study by Dakhlallh, Rashid, Abdullah, and Dakhlall (2021) who examines 

ownership structure and firm performance of selected firms in Jordan for the period of nine years from 2009-2017 using a 

sample of 180 companies. Secondary data were source from annual report of the sample companies data were analyse by 

using GMM and pool mean Group estimate as a method of data analysis.  The findings reveals that foreign ownership has 

insignificant positive effect on firm performance proxy by Tobin’s q.  

Oyedokun, Isah, and Awotomilusi (2020) examine the effect of ownership structure on firm value of quoted 

consumer goods companies in Nigeria. Secondary data were extracted from the annual report and accounts of the sample 

companies. The study employed multiple regression using panel data methodology as a technique for data analysis and the 

findings reveals that ownership structure proxies by foreign ownership and have positive and significant effects on the value 

of consumer goods companies in Nigeria.  

Furthermore, Lawal, Agbi, and Mustapha (2018) examined the effect of ownership structure on performance of 

listed insurance companies in Nigeria. Data were extracted from the annual report and accounts of the sample companies 

for the period of the study. The study adopted multiple regression using panel data as a techniques for data analysis and the 

study documented positive significant effect of ownership structure on performance of the sample companies in Nigeria. 

Similarly, Amin and Hamdan (2018) examines the relationship between ownership structure and firm performance 

of 171 firms selected from the Kingdom of Saudi Arabia. Secondary data were source from the annual report and accounts 

of the sample companies and the study employ multiple regression using panel data methodology as a method of data 

analysis. The findings from the study reveals that ownership structure has significant positive effect on the performance of 

insurance companies in Nigeria for the study period. 

From the foregoing reviewed, it is clear that the relationship between MGO and firm value have been documented 

in the extent literature. However, the finding are mixed or inclusive as some studies reported positive while others reported 

negative relationship between the two variables. In view of the above, we hypothesized that 

 

There is positive relationship between foreign ownership and firm value 

 

CSRD, Foreign ownership and Firm Value 

Although, there are few studies on the moderating effects of ownership structure on the relationship between CSRD and 

firm value but mostly conducted outside Nigeria, some of these studies include the work of Ishtiaq, Latif, Khan, and Noreen 

(2017) examines the moderating effect of ownership structure on the relationship between CSR and firm performance in 

Pakistan. The study employ multiple  regression as a technics for data analysis to test the hypothesis of the study and the 

findings reveals CSRD has significant and positive effect on firm performance, the study also reveals that foreign ownership 

has moderate the relationship between CSRD and firm performance. Implying that foreign investors encourage management 

to engage in more CSR activities which could affect the value of the firms in the long run. 

Furthermore, Kim, Park, and Lee (2018) examines the moderating effects of ownership structure on the relationship 

between CSRD and firm value of selected firms in China. The study employed multiple regression as a technique for data 

analysis and the finding revealed that CSR disclosure score is positively associated with the firm value. The study also 

documented that ownership structure has moderated the relationship between CSRD and firm value of the sample companies 

by strengthening the existing relation between the two variables. 

 Similarly, Ali, Zhang, Naseem, and Ahmed (2019) investigated the moderating effect of ownership structure on 

the relationship between CSRD and firm performance in China for the period of nine years from 2006-2014. Regression 

analysis revealed that market base measure of performance proxy by Tobin’s q have significant and positive effects on 

CSRD. The result also reveals that foreign ownership moderated the relationship between firm’s performance and CSRD. 

This implies that the introduction of foreign ownership as a moderating variables has strengthen the existing relationship 

between CSRD and firm value of the sample companies. 



Kantudu et al., Australian Finance & Banking Review 7(1) (2023), 1-8 

 

4 

From the foregoing, based on the reviewed of the available literature, different types of ownership and such  as 

foreign ownership in particular have been proven to moderate the relationship between CSRD and firm value. However, 

empirical studies on the moderating effect of foreign ownership on the relationship between stakeholder engagement and 

firm value are scanty especially in the Nigeria context, therefore this call for urgent investigation on the subject matter. In 

view of the above, we hypothesized that 

 

Foreign ownership strengthen the relationship between CSRD and firm value. 

 

Theoretical Framework 

Although different theories can be used to explain the relationship between CSRD and firm value like the agency theory, 

stakeholder theory and signaling theory among others. However, stakeholder theory is best to explain this work because the 

theory focuses on the relationship between an organization and its stakeholders. The main idea behind the stakeholder theory 

is that the success of a company depends on the extent to which the company is able to relate well with its diverse stakeholder 

groups.  The stakeholder theory focuses on the need to satisfied stakeholders demand which in the long run have effects on 

the performance of the organisation (Ruf et al., 2001). The idea that the stakeholder theory is imbedded in CSR has become 

widely accepted by many researches and thus become an alternative to shareholder theory. The term stakeholder explicitly 

represents a softening of (if not a fundamental challenge to) strict shareholder theory. This theory recognizes the fact that 

most, if not all firms have a large and integrated set of stakeholders to whom they have an obligation and responsibility. 

The stakeholder theory challenges the view that the shareholders have privilege over other stakeholders. In fact, 

the stakeholder theory is a theoretical response to financial theories that assert that firms should focus only on maximizing 

the economic interests of the shareholders, the real owners of the firm. It is argued that the shareholders are merely one of 

the several claimants on the firm. Thus stakeholder theory embodies the need to balance the claims of shareholders with 

those of other stakeholders. According to Kaler (2003), the stakeholder approach involves a basic reformist stance toward 

the shareholder theory, seeking to move it in the direction of greater equity and a less single-minded concentration on the 

owners’ interests rather than replacing it entirely. Deck (1994) assert that the aim of business organization is to create wealth 

and share among investors. However, he does not limit investors to mere shareholders but includes other groups such as 

employees, the government and society who invest in organizations in the form of education, skills and infrastructure.  

 

MATERIALS AND METHODS 

This study examine the moderating effect of foreign ownership on the relationship between CSRD and value of the listed 

oil and gas companies in Nigeria. A sample of ten companies out of the twelve listed oil and gas companies in Nigeria were 

selected for the study. The criterion for the selection of which was basically based on data availability. The companies that 

made up the sample size are; Forte Plc, MRS Plc, Oando Plc, Mobil Plc, Total Plc, Conoil Plc, Eterna Plc, Rank Unity 

Petroleum Compnay Plc, Anino International Plc, and Seplat Development Petroleum Co. Plc. 

Data was collected from the annual reports and accounts of the sample companies covering four years period, 2018-

2021. In analyzing the data collected, multiple regression technique using panel data methodology was applied. However, 

OLS in panel data model is associated with the problem of autocorrelation, cross sectional dependence and 

heteroskedasticity. In order to overcome such challenges, the study employed the Panel Corrected Standard Error (PCSE) 

approach for estimation. Furthermore, the study used local sustainability guideline released by the Nigerian Stock Exchange 

(NSE) in 2018 as a framework for CSR disclosure guideline in Nigeria. The general model based on the variables of the 

study which is a modification of Barron and Kenny (1986) regression model as used by Kim, Park, and Lee (2019).   

 

)(..........' 3210 iAGELEVCSRDitsQTobin itititititit    

)(..........' 3210 iAGELEVFROWNitsQTobin ititititit    

)(..........*'
543210 iiAGELEVFROWNCSRDFROWNitCSRDitsQTobin itititititit     

 

Where,  

Tobin’s Q = Tobin’s Q 

CSRD   =Stakeholder Engagement Disclosure 

FROWN = Ownership structure 

CSRD*FROWN= interaction of CSRD with FROWN 

AGE = Age of the firm 

Lev = Leverage 

Β0 = Parameters to be estimated  

Β1– β7 = Partial derivatives or the gradient of the independent variables. 

i = Firm 

t = time 𝜀 

Ԑ = an error term assumed to satisfy the standard OLS assumption  

 

Variables and their Measurement 

Firm value is the dependent variable proxy by Tobin’s q and is measured by 



Kantudu et al., Australian Finance & Banking Review 7(1) (2023), 1-8 

 

5 

Total market value of share  x 100  
Book value of share 

 

Where; 

Market value = current market price of share x number of shares/ divided by number of outstanding shares 

Book Value= book value of equity 

CSRD is the Independent Variable and is measured by taking the CSRD index as 

 

Total disclosure by Company        (i)      x 100 

Total maximum disclosure score (21) 

 

Foreign Ownership (FROWN) = Number of shares owned by foreign investors 

                 Total number of outstanding shared  

Control Variables 

Leverage (lev)       =      Total debt. 

                                      Total Asset 

Age= year of listening 

 

In analyzing the data collected, Ordinary Least Square (OLS) regression technique is used to estimates the model. 

The robustness test was conducted in order to ensure the validity of all statistical inferences for the study, so as to assess the 

impact of distribution problems in addition to the problems of outliers before deciding on the appropriate statistical method 

to use. The robustness test gives concrete evidence that the regression data is free of regression errors capable of invalidating 

the research’s regression assumptions. This makes the regression estimates reliable and enhances its accuracy. The tests 

carried out include VIF and heteroskedasticity test. 

 

RESULTS AND DISCUSSIONS 

The descriptive results of all the variables are presented in table 1 below 

 

Table 1. Descriptive Statistics of the Variables 

 
Variables Mean Std. Dev Min Max  Obs  

Tobin’s Q 24. 11543  28.03628 0.035763 79.05293 40 

CSRD   0.77430 0.191895 0.46667 0.971905 40 

FROWN   0.29587 0.322846 0 0.77809 40 

LEV 0.61597 0.19379  0.04485 0.842001 40 

AGE 34.4 11.95462 4 45 40 

         Source: Generated using STATA 12.0 

 

Table 1 shows that the average share value of the firms over the study period is N24.12 with a standard deviation 

of 28.03628 and a minimum and maximum value of 3k and N79 respectively. The results also shows that the average CSR 

disclosure by firms are 77% which indicate that oil and gas companies discloses more information on CSR during the period 

of the study. Foreign ownership (fro) has a mean of approximately of 30% shares own by foreign investors in the listed oil 

and gas companies in Nigeria with the minimum and maximum value of 0.and 78 % number of shares. Leverage being a 

control variable has a means of 61% debt to equity ratio with minimum and maximum value of 4% and 84% respectively.  

Age as second control variables have an average means of 34 years with the minimum and maximum of 34 and 45 years 

respectively. 

 

Table 2. Correlation Matrix of Dependent and Independent Variables 

 

Correlation 
 TOBIN’ Q CSRD  FROWN AGE FIRMSIZE 

TOBIN’S Q 1     

CSRD 0.3949 1     

FROWN  0.1847 0.3355 1   

LEV 0.0217 0.0873 0.1489 1  

AGE -0.1145 0.1572 0.05440 0.5061 1 

Source: Generated using STATA 12.0 

 

Table 2 shows the correlation between the dependent and explanatory variables. It shows a positive relationship 

between Tobin’s q and CSRD to the tune of 0.3949.  The results also shows a positive relationship between Tobin’s q and 

fro (0.1847), leverage and Tobin’s q also shows positive sign (0.0217). However, a negative relationship exist between 

Tobin’s q and age of the firm to the tune of -0.1145. The correlations are generally low, meaning there is no problem of 

collinearity. This is further buttressed by the results of the Variance Inflation Factor (VIF) test performance. The VIF results 

are substantially lower than 5.0 as the value ranges from 1.03-1.37. This provides evidence that there is no collinearity. 



Kantudu et al., Australian Finance & Banking Review 7(1) (2023), 1-8 

 

6 

Table 3, shows the regression results of the dependent variable (TOBIN’S Q) and the explanatory variables which 

shows the direct relationship between CSRD and firm value, foreign ownership and firm value as well as age and firm size 

on firm value. Below is the OLS regression result for the first model of the study. 

 

Table 3. Panel Corrected Standard Error Regression Result for Model 1 

 
Tobin’s q coeff Std,Err t P>(t) 

csrd 61.7206 4.37634 14.10 0.000 

lev 15.67601 12.97453 1.21 0.227 

age 0.54627 0.11948 -4.57 0.000 

cons 14.54023 5.59191 -2.60 0.009 

R-square 

Waid chi2 

Prob =  

0.1957 
204.91 

0.0000 

   

      Source: Generated using STATA 12.0 

 

The regression results displayed in Table 3 reveals the Panel Corrected Standard Error (PCSE) estimation produces 

R2 of about 19.5% which shows the extent to which changes in Tobin’s q of the listed oil and gas companies is accounted 

for by all the explanatory variables. The P value of the 0.0000, which is extremely significant, confirms the validity of the 

estimated model under the PCSE. Similarly, the wald chi2 is 204.91, implying that the model is fit and significant at 5% 

significant level considering the rule of the thumb. 

The regression results as displayed in Table 3 shows that corporate social responsibly disclosure (csrd) has positive 

and significant effect on the value of listed oil and gas companies in Nigeria. This is evidence by the value of the coefficient 

(34.31863) and P value (0.0000). This implies that, as the company discloses more information on community relation, the 

value of the company increases. Therefore, the null hypothesis which stated that community relation disclosure does not 

significantly affect the value of listed oil and gas companies in Nigeria should be rejected. The above findings is consisted 

with the work of Nguyen, Dung, vu, and Houng (2018), Salisu, Sani, and Lawan (2018) Emeka-Nwokeji (2019). However, 

it contradict the findings of Sopian and Mulya (2018). 

 

Table 4. Panel Corrected Standard Error Regression Result for Model 1l 

 
Tobin’s q coeff Std,Err t P>(t) 

Frown 33.14768 13.90577 2.38 0.017 

Lev 26.24191 15.47583 1.70 0.090 

Age 0.95964 0.293292 -3.27 0.001 

Cons 31.15546 5.81731 5.36 0.000 

R-square 

Waid chi2 

Prob =  

0.1211 

12.95 
0.0047 

   

Source: Generated using STATA 12.0 

 

The regression results displayed in Table 4 reveals the Panel Corrected Standard Error (PCSE) estimation produces 

R2 of about 12.1% which shows the extent to which changes in Tobin’s q of the listed oil and gas companies is accounted 

for by all the explanatory variables. The P value of the 0.0047, which is extremely significant, confirms the validity of the 

estimated model under the PCSE. Similarly, the Wald chi2 is 12.95, implying that the model is fit and significant at 5% 

significant level considering the rule of the thumb. 

The regression results as displayed in Table 4 shows that foreign ownership (frown) has positive and significant 

effect on the value of listed oil and gas companies in Nigeria. This is evidence by the value of the coefficient (33.14768) 

and P value (0.0017). This implies that, as the company discloses more foreign ownership, the value of the company 

increases. Therefore, the null hypothesis which stated that foreign ownership does not significantly affect the value of listed 

oil and gas companies in Nigeria should be rejected. The above is inconsistent with the findings of Oyedokun, Isah, and 

Awolomiliki (2020); Lawal, Agbi, and Mustapha (2018) who documented positive but insignificant relationship between 

foreign ownership and firm value. 

Furthermore, the regression result as displayed in Table 4 shows that leverage being a control variable has positive 

but insignificant effect on value of the listed oil and gas companies in Nigeria. However, age of the firm shows negative but 

has significant effect on the value of listed oil and gas companies in Nigeria.  

 

Table 5. Panel Corrected Standard Error Regression Result for Model 1ll 

 
Tobin’s q coeff Std.Err. t P>(t) 

Csrd 76.36626 11.37112 6.72 0.000 

Fro 167.3302 63.46606 2.64 0.008 

csrdfrown 183.7496 67.31321 2.73 0.006 

Lev 24.30113 18.59942 1.31 0.191 

Age -0.83638 0.328317 2.55 0.011 

Cons -24.90132 10.68403 -2.33 0.020 



Kantudu et al., Australian Finance & Banking Review 7(1) (2023), 1-8 

 

7 

R-square 

Wald 

Prob = chi2 

0.3198 

61.26 

0.0000 

   

Source: Generated using STATA 12.0 

 

The regression results displayed in Table 5 reveals the Panel Corrected Standard Error (PCSE) estimation produces 

R2 of about 31.9% which shows the extent to which changes in Tobin’s q of the listed oil and gas companies is accounted 

for by all the explanatory variables. The P value of the 0.0000, which is extremely significant, confirms the validity of the 

estimated model under the PCSE. Similarly, the Wald chi2 is 61.26, implying that the model is fit and significant at 5% 

significant level considering the rule of the thumb. 

The regression results as displayed in Table 5 shows that the interaction effect between corporate social 

responsibility disclosure and foreign ownership has a positive and significant effect on the value of listed oil and gas 

companies in Nigeria. This is evidence by the value of the coefficient (183.7496) and P value (0.006). This implies that, 

companies with more foreign ownership tend to disclose more information on CSR which could enhance the value of the 

firm. The likely reasons for this is that, foreign investors prefers to invest in companies that are more social responsible. 

Hence, foreign investors encourage management to engage in more CSR activities which could attract more foreign 

investors and at the same time other stakeholders like host communities and employees will have more confident on 

company and this will help the company to maintain its good reputation which have effect on the value of the firm. Therefore, 

the null hypothesis which stated that the interaction effect of CSRD and foreign ownership does not have significant effect 

on the value of the oil and gas companies in Nigeria should be rejected. The above findings is consistent with the work of 

Ali, Zhang, Naseem, and Ahmed (2019). 

 

CONCLUSIONS 

Based on the findings of this study, it can be concluded that the success of every business organisation depends on the extent 

to which is able to manage its relationships with its diverse stakeholders. Therefore, disclosing information on CSR is very 

importance because is the only means by which corporate organisation will communicate to its various stakeholder on how 

it responded to their social and environmental challenges. Furthermore, the introduction of foreign ownership as a 

moderating variable has strengthen the existing relationship between CSRD and firm value. This is evidence by the increase 

in the coefficient and the significant of the P-value of 183.7496 and 0.006 respectively. Finally, the study recommends that 

the management of oil and gas companies should diverse the means to attract more foreign investors in order to improve the 

value of their companies. 

 

 
 

Author Contributions: Conceptualization, A.S.K., K.I.D., A.Y., Z.S.M. and B.A.S.; Methodology, A.S.K.; Software, A.S.K.; Validation, A.S.K.; Formal 

Analysis, A.S.K., K.I.D., A.Y., Z.S.M. and B.A.S.; Investigation, A.S.K.; Resources, A.S.K.; Data Curation, A.S.K.; Writing – Original Draft Preparation, 
A.S.K., K.I.D., A.Y., Z.S.M. and B.A.S.; Writing – Review & Editing, A.S.K., K.I.D., A.Y., Z.S.M. and B.A.S.; Visualization, A.S.K.; Supervision, 

A.S.K.; Project Administration, A.S.K.; Funding Acquisition, A.S.K., K.I.D., A.Y., Z.S.M. and B.A.S. Authors have read and agreed to the published 

version of the manuscript. 
Institutional Review Board Statement: Ethical review and approval were waived for this study, due to that the research does not deal with vulnerable 

groups or sensitive issues. 

Funding: This research was supported by the Tertiary Education Trust Fund (TETFund) of Nigeria (Grant 117). 

Acknowledgments: The Authors wishes to acknowledge the role of TETFund for the Funding of this IBR Research. 

Informed Consent Statement: Informed consent was obtained from all subjects involved in the study. 
Data Availability Statement: The data presented in this study are available on request from the corresponding author. The data are not publicly available 

due to restrictions. 

Conflicts of Interest: The authors declare no conflict of interest.  

 
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