EFFECT OF CORPORATE GOVERNANCE CHARACTERISTICS ON FINANCIAL PERFORMANCE OF LISTED OIL AND GAS FIRMS IN NIGERIA

Abstract

An assessment of the effect of corporate governance characteristics on financial performance of listed firms has been a long standing issue and previous findings remain controversial because of the mixed results that were found. Consequently, this study assessed the effect of corporate governance characteristics on financial performance of listed oil and gas firms in Nigeria. The study had a population of ten (10) listed oil and gas firms and a sample size of eight (8) firms was arrived at based on a criterion that only the listed oil and gas firms with data over the period of the study are considered. Secondary method of data collection was used in gathering data from the sampled firms and it was analysed using Ordinary Least Square regression technique. The findings revealed that board size, board composition and female directors' composition have negative and significant effect on financial performance of listed oil and gas firms in Nigeria while foreign directors' composition had a negative and insignificant effect on financial performance of listed oil and gas firms in Nigeria. The study recommended inter alia that management of listed oil and gas firms should be retaining a small number of board size, foreign directors' composition, board composition and female directors' composition to enhance their financial performance in Nigerian listed oil and gas industry.