IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 9 2024
DOI: 10.56201/ijssmr.v10.no9.2024.pg1.20

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Asset Management and Financial Performance of Listed Oil and Gas Firms in Nigeria

ONWAEZE, Offor & Prof. OSUJI, Casmir Chinemerem

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Abstract

The study looked at how asset management affected the financial performance of Nigerian listed oil and gas corporations from 2013 to 2022. The study's particular aims are to determine the impact of asset management measures [current asset management (CAM), fixed asset management (FAM), inventory management (IM), and account receivable management (ARM)] on financial performance as a proxy for return on equity (ROE). The study used judgemental sampling approaches since the sample of eight (8) oil and gas firms were picked from the nine (9) oil and gas companies in a purposeful manner. A total of four research questions, objectives, and hypotheses were provided. The study used descriptive statistics, correlation, diagnostic tests, group unit root tests, and single equation cointegration tests, as well as panel least square regression with E-VIEW Software 9.0. This study used panel least squares via pooled, fixed, and random effects regression analysis, but random effects regression was chosen because it shows the level of relationship between the independent variables and the dependent variable, allowing us to determine whether or not there is a significant relationship. The data revealed that CAM, FAM, and ARM had a substantial effect on ROE; however IM has no significant effect on ROE of Nigeria's listed oil and gas enterprises. The study revealed that asset management affects the financial performance of Nigerian listed oil and gas companies. The following suggestions were given for the study: Managers of publicly traded oil and gas companies should keep the period between sales of goods and services and cash collection to a minimum, as increasing the frequency of debt collection can improve company performance. Listed oil and gas companies should aim to extend the payment period as long as feasible so that they can benefit from their suppliers financing their investments until payment is received.

keywords:

Asset, Management, financial, performance and Inventory

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