Impact of Firm Characteristics on the Profitability of Listed Oil and Gas Firms in Nigeria

The study examined the impact of firm characteristics on the profitability of listed oil and gas firms in Nigeria between the periods of 2013-2022. The study made used of secondary that which was sourced from the annual reports and accounts of the various oil and gas Firms for the measures of firm characteristics [Firm Size (FS), Firm Age (FA), Sales Growth (SG) and Operating Expenses (OE)] in relation to profitability proxied with 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. Multiple regression model specified was applied is one that seeks to explain change or variation in the value of the dependent variable on the basis of changes in other variables known as the independent or explanatory variables using a longitudinal data. The model assumes that the dependent variable is a linear function of the independent variables. Based on the summary of findings above we thereby concluded that OE have significant relationship on ROA while FS, FA and SG does not have significant relationship with ROA of oil and gas firms in Nigeria. Finally we conclude that there is no significant relationship between firm specific determinants and the PROF of listed oil and gas firms in Nigeria. The following recommendations are made: FS has a insignificant impact of ROA. The study therefore recommended that listed oil and gas firms should increase their FS so as to increase the ROA of their firms. The age of the firm has an insignificant influence on the ROA. It is recommended that the company should channel their effort toward assets utilization in order to boost their ROA level.