Managerial Ownership, Ownership Concentration and Financial Performance of Listed Oil and Gas Firms in Nigeria.

Abstract

This study examined the influence of managerial ownership and ownership concentration on financial performance among listed oil and gas firms in Nigeria. More insights were given into the way ownership structures influence firm outcome in the sector. The study adopted an ex post facto research design. Secondary data were obtained from the financial statements of the topmost seven oil and gas companies quoted on the Nigerian Exchange Group between 2015 – 2024. Panel regression analysis with fixed effects was adopted while the firm size was controlled by the standard errors to ensure consistency in measurement. The finding from the study indicates that both ownership concentration and managerial ownership have an optimistic and significant impact on financial performance. This study, therefore, concludes that the ownership structure, most especially ownership and managerial ownership plays a vital role in determining the financial performance of oil and gas companies in Nigeria. These results point to the importance of governance systems that favor successful control as well as support of interest in the sector. The study recommend that regulators and policymakers ought to encourage equal participation of both large investors and mangers, since this might lead to improved performance in the future. Also, there ought to be equal consideration of strategic changes in ownership structure to induce an excellent leadership culture practice, which is really important in Nigeria’s oil and gas industry characterized by strong capital intensity.