FIRMS ATTRIBUTES AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
DOI:
https://doi.org/10.67199/g67rg375Keywords:
Firm Attributes, Firm age, Firm size, Firm Growth rate, Sales growth rate, Capital Adequacy, Leverage and Financial PerformanceAbstract
The study investigates the impact of firm attributes on the financial performance of listed oil and gas companies in Nigeria. Many of these firms have experienced fluctuating profitability, low returns on investment, and earnings volatility due to various operational and economic challenges. This situation raises concerns about whether specific firm attributes contribute to poor or improved financial performance. Factors such as unstable profitability, fluctuating crude oil prices, exchange rate volatility, inflation, and uncertainties in the global energy market significantly affect these companies. The research covers a ten-year period from 2015 to 2024 and includes all five firms listed on the Nigerian Exchange (NE) as of December 31, 2024. Given the available data, the study employed a census sampling approach, examining all five firms in the population. Multiple regression analysis was conducted on the panel data to determine the effects and relationships between the variables. Additionally, correlation and descriptive statistics were utilized. The study recommends that firms enhance their internal financial management practices. While factors such as firm size, growth, capital adequacy, and liquidity exhibited insignificant negative effects on financial performance, it is still essential for firms to maintain adequate liquidity and sound capital structures to ensure operational efficiency and financial sustainability. Regulatory authorities should also promote corporate governance policies. Government agencies and industry regulators should establish policies that strengthen corporate governance and transparency. Moreover, managers should prioritize the efficient utilization of resources instead of merely focusing on expansion, as firm size did not significantly impact financial performance. Emphasizing operational efficiency and productivity improvements is crucial for long-term success.
Keywords: Firm Attributes, Firm age, Firm size, Firm Growth rate, Sales growth rate, Capital Adequacy, Leverage and Financial Performance.
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