EFFECT OF CORPORATE MONITORING MECHANISMS ON THE FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
DOI:
https://doi.org/10.67199/ydr7p131Keywords:
Corporate Monitoring Mechanisms, Financial Performance, Board Size, Board Independence, Foreign Ownership, Ownership ConcentrationAbstract
This study investigates the effect of corporate monitoring mechanisms on the financial performance of listed oil and gas companies in Nigeria. It examines the influence of board size, board independence, foreign ownership, and ownership concentration on financial performance, using Return on Assets (ROA) and Return on Equity (ROE) as performance indicators. The study adopts an obtained from the annual ex-post facto research design using secondary data reports and financial statements of twelve (12) oil and gas companies listed on the Nigerian Exchange Group (NGX) over a ten-year period (2015–2024). The data were analyzed using panel regression techniques and fixed effects models. The findings reveal that board size, board independence, foreign ownership, and firm size have a significant positive effect on the financial performance, while ownership concentration and leverage exert a negative effect. The study concludes that effective corporate monitoring mechanisms plays a vital role in enhancing firm performance. It recommends that companies should optimize their board structure, encourage board independence, attract foreign investors, and maintain balanced ownership and financial leverage to improve performance outcomes.
Keywords: Corporate Monitoring Mechanisms, Financial Performance, Board Size, Board Independence, Foreign Ownership, Ownership Concentration.
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