Exploring CSR and Financial Performance in Oil and Gas Industry

Tanaya, Olivia (2022) Exploring CSR and Financial Performance in Oil and Gas Industry. Wiga : Jurnal Penelitian Ilmu Ekonomi, 12 (3). pp. 241-248. ISSN 2088-0944 (Print); ISSN 2549-5992 (Online)

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Abstract

Paris Agreement requires many firms, regions, and nations to put more attention on corporate social responsibility (CSR). However, not all industries could move into climate change mitigation easily. Oil and gas industry is one of industries that have dilemma. This industry is highly contributed to gas emission, but they cover it by becoming the leading of CSR activities. On the other hand, doing CSR requiresfirms for using their resource for non-profitable purposes. This condition gets worse due to in recent years oil and gas industry struggles to operate their business. Hence, the decision for doing CSR needs to be evaluated. This research aims to determinethe impact of corporate social responsibility (CSR) on the firm’s financial performance which uses a fixed effect of panel data model for the study period from 2015-2019. Based on the results, CSR, especially social dimensions can increase the firm’s financial performance in the short term. It enables firms to build a good reputation which can attract more investors who consider the social impact of their investment portfolio. Further, since the impact of CSR is more pronounced in the economic downturn, itmay not be effective in the future market value

Item Type:	Article
Uncontrolled Keywords:	Climate Change, CSR, Financial Performance, Social
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
Divisions:	Faculty of Business and Economic > Department of Economic
Depositing User:	OLIVIA TANAYA
Date Deposited:	10 Nov 2022 07:22
Last Modified:	10 Nov 2022 07:22
URI:	http://repository.ubaya.ac.id/id/eprint/42857

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