IDEAS home Printed from https://ideas.repec.org/a/ajn/abrjou/v9y2024ip1-6id148.html
   My bibliography  Save this article

Corporate governance and financial performance of oil and gas firms: The Nigerian experience

Author

Listed:
  • Lucky Onmonya
  • Kolawole Ebire
  • Kehinde Lawal

Abstract

As a result of corporate scandals, governments and corporations around the world enacted a slew of laws and recommendations known as best practices codes. As a result, this study examines the effect of corporate governance on the financial performance of listed Nigerian oil and gas firms from 2012 to 2022. The sample size for the study was set at nine firms. Corporate governance was measured by board size, composition, independence, and audit committee size, while financial performance was measured by Return on Asset (ROA) and Return on Equity (ROE). The hypotheses were tested using fixed effect panel regression, which was informed by the Hausman test. Findings revealed that board size has a significant positive effect on ROA while board size have an insignificant effect on ROE. In addition, board composition has an insignificant effect on both the ROA and ROE. Furthermore, board independence has a significant negative effect on the ROA and ROE. Similarly, the size of the audit committee has a significant negative effect on ROA, while the effect on ROE was negative but insignificant. The study concludes that corporate governance significantly affect financial performance of listed oil and gas firms in Nigeria. The Security and Exchange Commission should ensure that listed oil and gas firms adhere strictly to the required board size since a larger board does not influence financial performance.

Suggested Citation

  • Lucky Onmonya & Kolawole Ebire & Kehinde Lawal, 2024. "Corporate governance and financial performance of oil and gas firms: The Nigerian experience," Asian Business Research Journal, Eastern Centre of Science and Education, vol. 9, pages 1-6.
    • Handle: RePEc:ajn:abrjou:v:9:y:2024:i::p:1-6:id:148
    as

    Download full text from publisher

    File URL: https://ecsenet.com/index.php/2576-6759/article/view/148/71
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ajn:abrjou:v:9:y:2024:i::p:1-6:id:148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tracy William (email available below). General contact details of provider: https://ecsenet.com/index.php/2576-6759/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.