INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND MANAGEMENT (IJAFM)
CORPORATE GOVERNANCE AND FINANCIAL LEVERAGE OF NIGERIAN LISTED OIL AND GAS COMPANIES
E-ISSN: 5669-4522
P-ISSN: 2567-3562
DOI: https://iigdpublishers.com/article/760
The viability of any business depends on the capital structure choice made by the organization. Consequently, it is imperative to contemplate multiple considerations when choosing an organizational structure for capital. This paper examines the relationship between corporate governance (CG) and firm financial leverage (FL) for oil and gas firms listed on the Nigerian Exchange Group. This research is conducted utilizing a sample of seven different companies listed on the Nigerian Exchange Group from 2013 to 2023, using purposive sampling. The study results shows that all the variables used to proxy CG (board independence, board size, and board gender diversity) are significantly inversely correlated with all forms of FL (total debt ratio, short-term debt ratio, and long-term debt ratio). It also demonstrates that in the selected organizations, short-term debt is more frequently employed as an operating source of financing than long-term debt. The study, therefore, recommends that firms should include females as their board members and similarly have a sizable proportion of autonomous directors on their company boards so they can obtain loan finance on advantageous conditions.
Surajudeen Tiamiyu, Julius Agwu Ogar, Israel Adebowale Agunbiade & Aderemi Adetunji Abdulazeez
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