FIRM SPECIFIC DETERMINANTS AND ITS IMPLICATION ON LISTED OIL AND GAS FIRMS PROFITABILITY IN NIGERIA

Abstract

The study examined the analysis of firm specific determinants of profitability (PROF) of listed Oil & Gas firms in Nigeria between the periods of 2011-2020. The study made used of secondary data which was sourced from the annual reports and accounts of the various 10 Oil and Gas Firms for the measures of firm specific determinants [Firm Size (FS), Firm Age (FA), Liquidity (LIQ), Leverage (LEV), Sales Growth (SG) and Operating Expenses (OE)] in relation to profitability proxy with Return on Assets (ROA). Descriptive statistics and the correlation analysis were used to determine the nature of relationship between the independent and dependent variables. In view of the hypothesis formulated for this research, the method of data analysis chosen was a multiple regression analysis using E-VIEW 9.0 computer software. The findings revealed that LIQ, LEV and OE have significant relationship on ROA while FS, FA and SG does not have significant relationship on ROA relationship with ROA. Hence, the study concluded that there is a significant relationship between firm specific determinants and the PROF of listed Oil & Gas firms in Nigeria. This study recommended among others that Listed Oil and Gas Firms should increase their FS so as to increase the return on assets of their firms.
 Keywords: Profitability, Liquidity, Leverage, Firm Size and Return on Asset.