Capital structure and non-financial performance of listed oil and gas companies in Nigeria

Aderibigbe, Amos Adejare and Siyanbola, Tunji Trimisiu and Adedeji, Samuel Babatunji and Abiodun, Olatunde Omotayo (2025) Capital structure and non-financial performance of listed oil and gas companies in Nigeria. International Journal of Science and Research Archive, 15 (2). pp. 659-669. ISSN 2582-8185

This study assessed the influence of capital structure (CS) on the non-financial performance (NFP) of listed oil and gas (O&G) companies in Nigeria. The study employed a panel data regression approach using financial statements of the companies from 2014 to 2023. The Hausman test guided the analysis, ensuring robust model estimation. Findings revealed a significant positive relationship between E/TC and ESG scores, suggesting that companies with higher equity are better positioned to foster sustainable and socially responsible practices, while it exhibits no significant effect on CSR. D/TC shows no significant effect on environmental, social, and governance (ESG) but exhibits a significant negative impact on corporate social responsibility (CSR), indicating that excessive debt undermines CSR initiatives. These results highlight the differential effect of CS components on various dimensions of NFP. The study concluded that an optimal CS, emphasizing equity over debt, is essential for enhancing sustainability in the O&G sector. It is recommended that firms prioritize equity financing to strengthen their ESG performance and minimize reliance on debt to support CSR efforts.