CAPITAL STRUCTURE AND PROFITABILITY OF DOWNSTREAM OIL AND GAS FIRMS LISTED IN NIGERIA

CAPITAL STRUCTURE AND PROFITABILITY OF DOWNSTREAM OIL AND GAS FIRMS LISTED IN NIGERIA

Author by Dr. Samson Alalade

Journal/Publisher: Research Journal Of Finance And Accounting

Volume/Edition: 11

Language: English

Pages: 13 - 24

Abstract

Abstract
The Nigerian downstream oil and gas sector in the last few years have witnessed a plethora of challenges such as infrastructural decay, rising cost of importation of petroleum products (fuel, diesel, aviation fuel and kerosene) which is a fallout of breakdown of the nation’s refineries. The study examined the impact of capital structure on the profitability of firms in the downstream sector of the oil and gas industry in Nigeria from 2000 to 2018. This study adopted an ex-post facto research design. The study employed a dynamic panel system equation of generalized method of moment. Secondary data were sourced from the annual reports of the 8 selected oil and gas companies listed in Nigeria. The study applied descriptive statistics, correlation, and unit root test as well as inferential statistics. Inferences were made at 5 percent significant level. Results showed that Debt Capital ratio had a negative and significant relationship with ROA (? = -0.0257, t=-5.147, p<0 xss=removed t=5.3015p xss=removed t=4.3521,>


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