Moderating Effect of Firm Size on Market Risk and Financial Performance of Quoted Oil Firms in African Stock Market
Abstract
The study examines the Moderating effect of firm size on market risk and financial performance of quoted oil firms in African stock market. The study made us of expo-fact-to research design and secondary data that were collected cover a period of 2012 to 2021. The data collected were analyzed using Panel data regression model. From the analysis, interest rate has positive impact on the financial performance of oil and gas firms listed on the African stock market. Interest rate is not a major determinant of financial performance of oil and gas firms listed on African stock market but it has weak influence of their performance, exchange rate with P-statistics value of 0.000 is an indication significantly associated with financial performance of oil and gas firms on African market. The result also expressly indicated that decisions that relate to profit improvement of oil and gas firms on African stock market must include exchange rate fluctuation. Hence exchange rate is a major determinant of the changes in financial performance and position of the firms and commodity price changes has P-value of 0.022 shows that commodity price is another important factor to consider when deciding for a profitability of oil and gas firms listed on the African market. Just like last market risk component discussed, the empirical outcome of commodity price change reflects practical reality on the effect of commodity price changes on the profitability of firms. Hence its recommended that firms should give serious attention to exchange rate, commodity price a as well as interest variable in other for them to have better performance.
Keywords
Market risk, financial performances, oil Firms, African stock market
Citations
IRE Journals:
Ogujiofor Magnus Nkemjika , Prof. Ifurueze M. S. , Dr. Ofor N. T
"Moderating Effect of Firm Size on Market Risk and Financial Performance of Quoted Oil Firms in African Stock Market" Iconic Research And Engineering Journals Volume 7 Issue 3 2023 Page 70-87
IEEE:
Ogujiofor Magnus Nkemjika , Prof. Ifurueze M. S. , Dr. Ofor N. T
"Moderating Effect of Firm Size on Market Risk and Financial Performance of Quoted Oil Firms in African Stock Market" Iconic Research And Engineering Journals, 7(3)
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