Corporate Risk Management, Capital Structure and Financial Performance of Listed Oil and Gas Companies in Nigeria

Jul 20
1 min read

Authors: Bashir Aminu Mohammed, Abdulrasheed Mohammed Shehu, El-Maude, Jibreel Gambo, and Usman Umar Naibi

Abstract

This study examines the impact of corporate risk management on financial performance of listed oil and gas companies: moderating role of capital structure. The population of the study include all listed oil and gas companies in Nigerian. The study made use of secondary data extracted from the annual reports. The study covers a period of ten (10) years from 2015-2024 and data collected is analyzed using panel regression technique. The findings indicate that Liquidity Risk (LQR), Market Risk (MKR), Firm Growth (FGW) and Capital Structure (CST_) shows a Positive and Insignificant impact on Financial Performance via Return on Equity (ROE) measure of Listed Oil and Gas Companies in Nigeria under study. Credit Risk (CRR), Moderating Effect of Capital Structure on Credit Risk (CRRCST_), Moderating effect of Capital Structure on Liquidity Risk (LQRCST_), Moderating Effect of Capital Structure on Operational Risk (OPRCST_) and Moderating Effect of Capital Structure on Market Risk (MKRCST_) revealed a Negative and Insignificant impact on Financial Performance via Return on Equity (ROE) measure of Listed Oil and Gas Companies in Nigeria under study. Lastly, Operational Risk (OPR) and Firm Size (FSIZ) show a Positive and Significant (at 10%) impact on Financial Performance via Return on Equity (ROE) measure of Listed Oil and Gas Companies in Nigeria under study. This study recommends that the management should ensure effective liquidity and operational risk management and sound credit risk strategies that will translate any business risk into improve shareholders returns.

Keywords: Corporate Risk Management, Capital Structure, Financial Performance, Oil and Gas