Determining Return on Investment in Listed Nigerian Oil and Gas Firms: the Role of Company Traits

  • Gilbert Ogechukwu Nworie Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
  • Lucy Cecilia Mmadubuobi Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
  • Hilary Onyebuchi Muojekwu Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
DOI: https://doi.org/10.51699/cajitmf.v4i10.628
Keywords: Company Traits, Return on Investment, Firm Size, Firm Leverage, Firm Age

Abstract

The broad objective of the study was to examine the effect of company traits on the return on investment (ROI) of listed oil and gas firms in Nigeria. Specifically, the study assessed the effect of firm size, firm leverage and firm age on return on investment of listed oil and gas firms in Nigeria. Ex-post facto research design was deployed. Purposive sampling was applied in selecting the sample size of the study from a population frame of 10 listed Nigerian oil and gas firms. Secondary data for the study spanned from 2013 to 2022 accounting year-ends. Random effect estimation was run which found that: firm size has a positive and significant effect on return on investment; firm leverage has a negative and significant effect on return on investment; and firm age has a negative but insignificant effect on return on investment of listed oil and gas companies in Nigeria. We therefore recommend that managers of oil and gas firms should increase their size by diversifying operations, or scaling up their existing projects in order to access more resources, benefit from economies of scale, and enhance their bargaining power.

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Published
2023-10-18
How to Cite
Nworie , G. O., Mmadubuobi, L. C., & Muojekwu, H. O. (2023). Determining Return on Investment in Listed Nigerian Oil and Gas Firms: the Role of Company Traits. Central Asian Journal of Innovations on Tourism Management and Finance, 4(10), 69-85. https://doi.org/10.51699/cajitmf.v4i10.628
Issue
Vol. 4 No. 10 (2023): October 2023
Section
Articles

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