Capital Structure and Financial Performance of Listed Oil and Gas and Consumer Goods Firms in Nigeria: A Comparative Panel Analysis (2011–2020) (JALINGO JOURNAL OF SOCIAL AND MANAGEMENT SCIENCES)

Summary

• The study uses annual reports of ten listed firms, five per sector, covering 2011–2020.p.1
• Nigerian oil and gas firms carry the highest indebtedness to the banking sector, reaching ₦3.58 trillion as of February 2018.p.2
• Mean ROA is 0.0741 for consumer goods firms against 6.3560 for oil and gas firms.p.9
• R-squared is 0.3547 for the consumer goods model against 0.0972 for oil and gas.p.12

Key insights

1. Hypotheses were tested at the 5% level of significance.p.3
2. The Hausman test selects random effects for oil and gas (0.0672) and fixed effects for consumer goods (0.0150).p.11
3. In oil and gas, the short-term debt ratio has the strongest positive correlation with ROA (r = 0.2861).p.10
4. In consumer goods, the short-term debt ratio shows the strongest negative correlation with ROA (r = -0.5001).p.10
5. The total debt ratio is insignificant in both sectors, with probabilities of 0.2178 and 0.5151.p.13
6. Variance inflation factors ranged from 1.23 to 3.45 for oil and gas and 1.15 to 2.98 for consumer goods, indicating no multicollinearity problem.p.13