CAPITAL STRUCTURE AND PERFORMANCE OF OIL AND GAS SECTOR IN NIGERIA EXCHANGE LIMITED : ARTIFICIAL INTELLIGENCE APPROACH

Abstract

This study investigates the relationship between capital structure and financial performance in the oil and gas sector listed on the Nigerian Stock Exchange Limited, utilizing an Artificial Intelligence (AI) approach. The combination of debt and equity financing used by a company is known as its capital structure. For years, researchers and finance experts have been fascinated by the intricate link between capital structure and a firm's overall performance. The AI-driven analysis reveals significant correlations between debt-to-equity ratio, asset structure, and profitability metrics. The findings suggest that optimal capital structure configurations can enhance financial performance, while inefficient capital allocation hinders growth. The research contributes to the existing literature by providing novel insights into the Nigerian oil and gas sector's capital structure dynamics and offering data-driven recommendations for stakeholders.The findings have implications for corporate finance, investment decisions, and regulatory policies in the Nigerian oil and gas sector.