CAPITAL STRUCTURE AND THE PERFORMANCE OF OIL AND GAS FIRMS

Abstract

The capital structure and financial results of oil and gas companies traded on the Nigerian Stock Exchange are the focus of this investigation. Using yearly reports from eight publicly traded oil and gas firms over a thirteenyear period (2009-2021), the study utilizes an explanatory research methodology and panel data analysis to draw conclusions. For this purpose, we use both descriptive statistics and multiple regression models. Total Nigeria Plc, Oando Nigeria Plc, MRS Oil Nigeria Plc, Conoil Nigeria Plc, Ardova Nigeria Plc, Eterna Oil Nigeria Plc, Seplat Nigeria Plc, Japaul Gold and Venture, and Seplat Nigeria Plc are all part of the sample. The results show that for the studied oil and gas businesses, the capital structure components of short-term debt (STD), long-term debt (LTD), total debt to equity (TDE), and interest coverage ratio (INC) all have positive but statistically insignificant relationships with return on assets (ROA). Based on the data, it was determined that these aspects of the firms' capital structures had no appreciable effect on the companies' performance. In addition, the study emphasizes the need of considering additional factors when evaluating the effect of capital structure on firm performance and advises that future studies expand their focus outside the oil and gas industry. The findings stress the need for more research into the complex interplay between capital structure and performance, recommending that analysts take into account a wide range of sectors and external influences.