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Articles

Vol. 15 No. 1 (2024): EJA

Analysing the Effects of Ownership Structure on Financial Performance of Oil Firms in Nigeria

Submitted
September 25, 2024
Published
2024-09-25

Abstract

Research Objective: This study investigated the impact of ownership structure on the financial performance of listed oil and gas firms in Nigeria's capital market.

Methodology: A quantitative approach was employed, using secondary data from publicly available financial reports of the listed firms. Panel data regression analysis was conducted to examine the relationship between ownership structure and financial performance, specifically return on assets.

Findings: The regression results revealed that ownership structure has a positive but insignificant effect on return on assets, indicating a potential but limited influence on financial performance for the sampled firms.

Conclusion: The findings suggest that while ownership structure may have a positive effect on financial performance, it is not a significant determinant for oil and gas firms in Nigeria.

Recommendations: Policymakers and investors should consider other corporate governance factors alongside ownership structure when seeking to enhance firm performance. Further research could explore additional variables that may have a more substantial impact on financial outcomes.

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