Corporate Governance and Profitability of Quoted Oil and Gas Companies in Nigeria (Published)
This study investigated the influence of corporate governance on profitability of quoted oil and gas companies in Nigeria. The ex post facto research design was adopted for the study. The population of the study was made up of the twelve (12) oil and gas companies listed on the Nigerian stock exchange between 2010 and 2018. Ten (10) listed oil and gas companies in Nigeria constituted the sample size for this study. Data required for the study were extracted from the audited financial statements of the quoted oil and gas companies that constituted the sample of this study and analysis of data was carried out using descriptive statistics. Multiple regression and correlation statistics were used in testing the hypothesis postulated. The investigation revealed that a significant positive linear relationship exists between corporate governance and profitability of quoted oil and gas companies in Nigeria and that board independence, board size and board meetings accounts for 3.2 percent, 21.9 percent and 2.8 percent respectively of the profitability of quoted oil and gas companies in Nigeria. The results of the study further revealed that audit committee independence, audit committee meetings and audit committee competence accounts for 1.6 percent, 6.8 percent and 14.3 percent respectively of the profitability of quoted oil and gas companies while external auditor independence, shareholders’ involvement and ownership concentration accounts for 1.2 percent, 23.6 percent and 0.2 percent respectively of the profitability of quoted oil and gas companies in Nigeria. Based on the findings of the study, it is concluded that corporate governance has a moderate influence (52.3 percent) on profitability of quoted oil and gas companies in Nigeria. One of the recommendations made was that quoted oil and gas companies in Nigeria should continually appraise their corporate governance system with a view to determine whether the system is functioning as expected so that corrective actions can be taken to address any deficiency in the system and such appraisal should be done annually.
Keywords: Board Of Directors, Corporate Governance, Corporate Governance Mechanisms, Net Profit Margin, Profitability
Effect of Corporate Governance Mechanisms on Corporate Performance: An Empirical Study of Non-Financial Firms in Nigeria (Published)
The study examined the influence of corporate governance mechanisms on corporate performance of non-financial firms in Nigeria. Secondary data from published accounts and Nigerian Security Exchange Factbooks were analyzed using panel regression methodology. Independent variables were board size, directors’ shareholding, block holding and leverage while return on assets and return on equity was the dependent variables for the period between 1990 and 2017. Findings suggest that leverage has positive significant correlation with return on assets and return on equity while directors’ shareholding, block holding had inverse relations with dependent variables. However, board size had mixed result with a negative significant influence on return on equity while showing an inverse but insignificant impact on return on assets. The study concludes that the selected independent indicators have more influence on return on equity than return on assets. Thus, return on equity performs better than return on assets for non-financial firms in Nigeria
Keywords: Corporate Governance Mechanisms, Corporate performance, Nigerian listed firms