Capital Structure and Firm Size of Selected Listed Firms in the Oil and Gas Industry in Nigeria
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Date
2022
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Abstract
This study examined the effect of capital structure on the firm size of selected listed Oil and Gas Industry in Nigeria. It also looked at whether firm size is influenced by Equity Finance, Noncurrent Liability Finance, Total Liability Finance and Leverage. The corporate annual reports and websites for the periods 2011-2020 were utilised as the main sources of secondary data. The study adopted the use of panel estimation technique to analyse the data collected from annual reports and corporate websites of the Listed Oil and Gas Industry in Nigeria. Hausman test confirmed fixed effect model as appropriate for this study. The overall finding showed that capital structure has a significant effect on firm size. In addition, Equity Finance and Leverage have a negative and significant effect on firm size. Total Liability Finance has a positive and significant effect, while Noncurrent Liability Finance has no significant effect. The study recommended that all the identified macro and micro economic factors that affect capital structure and firm size should be considered when formulating an appropriate capital structure decision for the overall benefits of shareholders.