The Impact of Corporate Governance on the Financial Performance of Listed Oil and Gas Firms in Nigeria
CHAPTER ONE
Objective of the Study
The primary purpose of this study is to explore the impact of corporate governance on the financial performance of listed oil and gas firms in Nigeria. Specifically, the study aims to:
- Investigate the relationship between corporate governance practices and the financial performance of listed oil and gas firms in Nigeria.
- Examine how different corporate governance mechanisms, such as board structure, executive remuneration, and shareholder rights, impact financial performance.
- Analyze whether improved corporate governance practices have led to enhanced financial performance in the Nigerian oil and gas sector.
CHAPTER TWO
Literature Review and Theoretical Framework
Corporate Governance
Corporate governance refers to the system by which companies are directed and controlled. It encompasses a set of rules, practices, and processes that determine how a company is managed and how it interacts with its stakeholders. The key components of corporate governance include board structure, accountability, transparency, and the roles of stakeholders such as shareholders, management, and external auditors (Sani, 2021). Board structure typically involves the composition of the board of directors, which includes independent directors and executive directors. An effective board ensures that the company is managed in a manner that serves the interests of shareholders and other stakeholders while promoting long-term value creation (Wobo & Ibanichuka, 2021).
Accountability within corporate governance is fundamental as it ensures that the actions of the management and board are subject to scrutiny and evaluation. This is typically achieved through mechanisms such as the audit committee, which monitors financial reporting processes and ensures that financial statements are accurate and comply with regulations (Onmonya & Ebire, 2023). Transparency, another crucial aspect of corporate governance, involves providing stakeholders with clear and accurate information about the company’s financial health, operations, and governance practices. Transparency promotes trust and helps investors make informed decisions about their investments (Okolie & Ogbaragu, 2022).
CHAPTER THREE
Methodology
Research Design
Research design refers to the blueprint or plan that guides the researcher in the process of collecting, analyzing, and interpreting data (Creswell & Creswell, 2018). It provides a structured approach to address the research problem and meet the study objectives efficiently. In this study, a correlational research design was chosen, which examines the relationship between corporate governance practices and the financial performance of listed oil and gas firms in Nigeria. Correlational research is appropriate when the goal is to understand how two or more variables relate to one another without necessarily manipulating them (Saunders et al., 2019).
Sources and Method of Data Collection
The sources and methods of data collection play a crucial role in ensuring the reliability and validity of the study’s findings. For this study, secondary data was used as the primary source of information. Secondary data refers to data that has already been collected and analyzed by other researchers or organizations for purposes other than the current research study (Bell et al., 2019). This method was selected due to the availability of financial reports and corporate governance disclosures from listed oil and gas companies in Nigeria.
The secondary data for this study includes publicly available annual reports, financial statements, and corporate governance disclosures published by the oil and gas firms on their websites and through regulatory bodies such as the Nigerian Stock Exchange (NSE) and the Securities and Exchange Commission (SEC) Nigeria.
In addition to secondary data, descriptive statistical analysis was conducted using SPSS version 27 to ensure that the data was appropriately coded, analyzed, and interpreted. SPSS is a widely used statistical tool that allows for complex data analysis and visualization, which is particularly useful in analyzing the relationships between corporate governance variables (such as board composition, audit committees, and shareholder activism) and financial performance measures (Okeke, 2021).
CHAPTER FOUR
Data Presentation, Analysis and Discussion
Results and Discussion
References
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