Title: Sustainable Finance And Corporate Performance Of Quoted Nigerian Oil And Gas Multinationals
Authors: EDOGBO, E.O. (MSc.), Onuorah, A.C. (Ph.D.) & Ehiedu, V.C. (Ph.D.)
Volume: 9
Issue: 2
Pages: 82-89
Publication Date: 2025/02/28
Abstract:
This paper evaluated the effect of sustainable finance on corporate performance of oil and Gas Companies over 15 years spanning from 2008-2022. The paper specifically disaggregated sustainable finance (regressor) into eco-friendly finance, green finance and social finance while corporate performance (regressand) was measured by return on investment (ROI). Meanwhile, firm size and financial leverage served as control variables. Data were drawn from all the ten (10) quoted oil and Gas Companies which formed the study population. The paper adopted the panel data estimation technique since the variables exhibited both cross section units and time series features. The Hausman diagnostic test evidenced that, the Random Effect Model is the most appropriate panel data estimate for the study. Meanwhile, the model accounted for multi-collinearity, normality; Heteroskedasticity, and mis-specification so as to ensure that the regression results are fit for the formulation of informed policies. The regression estimate evidenced that, when financial leverage and firm size were introduced into the model as moderating variables, eco-friendly finance had a high retarding effects on ROI. However, green finance have high meaningful effects on ROI. In the case of social finance, social finance became highly value additive. Hence, the paper concludes that, when moderated for both firm size and financial leverage, green finance and social finance are highly instrumental to the corporate performance (ROI) of oil and Gas Multinationals throughout the reviewed periods. Consequently, the regulatory authorities of the Nigerian oil and gas industry need to re-evaluate their cost centres with a view to determine the cost centre that reduces the company's ROI.