Corporate Performance and Accounting Control Practice: A Comprehensive Analysis of Listed Oil and Gas Companies in Nigeria

This study examines how to enhance the corporate performance through impact of accounting control practice specifically within oil and gas companies operating in Nigeria. With a background rooted in the challenges of inadequate accounting controls leading to financial irregularities, the research investigates how preventive, detective, and corrective accounting mechanisms can enhance corporate performance. The research employs a quantitative approach, analyzing secondary data over 21 years (2003–2023) from annual reports of ten prominent listed oil and gas companies listed on the Nigerian Exchange Group. Using multiple panel regression models, the study examines the effects of each control practice on net profit margins. Findings reveal that preventive controls, such as segregation of duties and transaction authorization, significantly enhance performance by reducing financial mismanagement. Detective controls, including regular audits and reconciliations, are shown to have the strongest positive influence on performance, underscoring their role in early fraud detection and compliance. Corrective controls, aimed at rectifying detected errors, contribute positively to financial outcomes, establishing a comprehensive accounting framework that reinforces corporate governance and financial integrity. This study contributes to literature by focusing on listed oil and gas companies in Nigeria, emphasizing the need for robust accounting controls in sectors with complex regulatory landscapes. The research suggests that effective accounting controls can foster transparency, thereby increasing investor confidence and aligning corporate activities with strategic goals. Limitations include reliance on secondary data, which may not capture nuanced operational insights. The study's implications recommend that policymakers encourage stringent accounting controls across multinational oil and gas companies to enhance performance, offering practical guidance for sustaining profitability in volatile markets.