scholarly journals LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA

2021 ◽  
pp. 15-25
Keyword(s):  
Oil And Gas ◽  
Negative Impact ◽  
Secondary Data ◽  
Equity Capital ◽  
Debt Financing ◽  
Annual Reports ◽  
Oil And Gas Firms ◽  
The Impact ◽  
Retained Earnings ◽  
Oil And Gas Sector

The purpose of this paper is to figure out the link between liquidity and profitability, as well as the impact of liquidity on profitability. Ten listed companies with a bigger market share in the oil and gas sector of the Nigerian economy were subjected to a fixed panel regression study. Secondary data was gathered for ten years, from 2011 to 2020, from their published annual reports. Profit after tax (PAT), Return on Asset (ROA), and Return on Equity (ROE) were used to determine profitability (ROE). Internal liquidity variables such as equity, debt, and sales were utilized to determine the behavior of the dependent variable, but external elements such as lending interest rate and exchange rate were employed to further explain profitability behavior. The data were analyzed using a multiple regression approach. The findings reveal that debt has a significant negative impact on companies' profitability. Similarly, equity capital, as well as retained earnings, are more beneficial to firms than the debt financing of the oil and gas sector. The study, therefore, recommends that oil and gas firms should boost their equity capital, improve their revenues, increase their retain earnings, and reduce debt financing to enable them to generate more wealth for shareholders.

scholarly journals How Does Debt Financing Affect Financial Performance? A Study of Transport Companies Listed in Pakistan

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Ulfat Abbas ◽  
Sohail Aziz ◽  
Samina Khan
Keyword(s):  
Financial Performance ◽  
Debt Financing ◽  
Annual Reports ◽  
Transport Sector ◽  
Return On Assets ◽  
Secondary Sources ◽  
Earnings Per Share ◽  
The Impact ◽  
Retained Earnings

  Purpose: The purpose of this paper investigates the impact of debt financing on airline’s (transport) sector performance of Pakistan. Design/Methodology/Approach: We gathered the data from secondary sources. In this study, we used a data sample of 11 years from 2008-2018 by using companies annual reports. Due to unavailability of data, only 3 transport companies have been taken for analysis. The software which we used in analysis is SPSS (Statistical Package for Social Science). Findings: The findings of the study suggests that there is opposite relationship between debt financing and financial performance of airlines. Debt is measured from three ratios, short term debt to total assets, long term debt to total assets and total debt to total assets ratio. For the measurement of performance, we used return on assets and earnings per share. We concluded on the basis of findings that the companies should focus on retained earnings which is cheaper source of finance and use less level of debt. As the more level of debt use by the companies, the performance of companies’ decrease. Implications/Originality/Value: There is only one study is available in Pakistan which used transport sector in Pakistan in debt financing context                                                          

scholarly journals Impact of Foreign Direct Investment on the Financial Performance of Listed Deposit Banks in Nigeria

2020 ◽  
Vol 11 (2) ◽  
pp. 323 ◽  
Author(s):  
Tony Ikechukwu Nwanji ◽  
Kerry E. Howell ◽  
Sainey Faye ◽  
Adegbola Olubukola Otekunrin ◽  
Damilola Felix Eluyela ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Financial Performance ◽  
Direct Investment ◽  
Positive Impact ◽  
Profit Maximization ◽  
Secondary Data ◽  
Equity Capital ◽  
Annual Reports ◽  
Outward Fdi ◽  
The Impact

In this study, we examine the impact of foreign direct investment (FDI) on the financial performance of Nigerian listed deposit banks. We collected secondary data from the annual reports and accounts of 14 banks between 2010 and 2017. We employed the Tobin Q quantitative method for the analysis. We adopted the theoretical framework of pecking order theory since the analysis of the impact of FDI on the financial performance of these banks are both inward and outward FDI. The Tobin Q method was used as the dependent variable and FDI as an independent variable. Board size, firm size, equity capital and reinvested earnings were all financial performance indicators employed to test the impact of FDI on the financial performance of the banks on understudy in Nigeria. The result of the data analysis and findings showed that FDI had contributed positively to the development and performance of the deposit banks over the period under consideration. Our theoretical findings suggest a positive relationship between FDI and profit maximization. This support the FDI theory that banks or organisations are financed partly with debt-equity, both used by the banks to balance the cost and benefit financing decisions by the management. In the case of the empirical findings, the results of hypothesis testing show a significant effect on the banks’ financial performances. Given these results, we conclude that FDI has made a positive impact on the development and financial performances of the listed deposit banks under study which resulted in some of the banks’ growth from local banks in Nigeria into some of the leading international banks in Africa.

scholarly journals Performance Evaluation of Oil and Gas Companies in Sultanate of Oman

2021 ◽  
Vol 2 (2) ◽  
pp. 37-46
Author(s):  
Mohammed Ahmed ◽  
◽  
Balamurugan Muthuraman ◽  
Qais Al-Hadabi ◽  
◽  
...  
Keyword(s):  
Oil And Gas ◽  
Secondary Data ◽  
Profit Margin ◽  
Securities Market ◽  
Annual Reports ◽  
Financial Measures ◽  
Return On Equity ◽  
Net Profit ◽  
Oil And Gas Companies ◽  
The Impact

Purpose: The purpose of the study was to analyze the impact of ROA and ROE on the net profit of the selected Oil and Gas companies (O & G) in Oman; to analyze the effect of ROA on the assets performances of selected Oil and Gas companies in Oman and to analyze the relationship between ROE and debt-equity on the performances of oil and gas companies in Oman. Design/methodology/approach: The secondary data was obtained from the annual reports of Oman's major telecom providers listed in the Muscat Securities Market (MSM) for the period 2015 to 2020. The data collected from the financial statements were analyzed using ratio analyses with the help of excel. The secondary data was obtained from the annual reports of selected O & G companies in Oman, listed in the Muscat Securities Market (MSM) for the period 2015 to 2020. The collected data was analyzed with financial ratio analysis using excel and SPSS to evaluate the financial performance of the companies. Findings: The study revealed that amongst the overall financial performances of the O & G companies, Oman Oil Marketing, Muscat Gases, and Shell Oman Marketing topped the list followed by National Gas and Al Maha Petroleum. The study also revealed that there is a correlation between Return of Assets (ROA) and Return on Equity (ROE), and Assets Turnover Ratio (ATO) and Net Profit Margin (NP). ROA, ROE, and Debt Equity Ratio (DE) do not have any correlation with NP which purports that there is no relationship between ROA & NP, ROE & NP, and DE & NP. Research limitations/implications: The study revealed that the financial performances of the O & G companies in Oman can be measured through analysis NP, ROE, ROA, ATO & DE but it is of no significance to the company’s financial performances as ROA, ROE has no impact on the Net profit margin of the O & G companies in Oman. Similarly, neither ATO nor DE has any impact on the net profit margin. Social implications: The study helps the investors and management of the O & G companies to understand the variables and the efforts to reform financial measures and take necessary action and suitable decisions to enhance the financial performances of the oil and gas companies. Originality/Value: The study was carried out with five major selected O & G companies of Oman and the study had relied mostly on quantitative techniques involving financial ratios and correlation analysis. The study can be extended to other oil-based economies countries as well.

scholarly journals Market Value and Capital Structure: A Study of Indian Manufacturing Firms

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Dhananjaya K.
Keyword(s):  
Capital Structure ◽  
Negative Impact ◽  
Market Timing ◽  
Market Value ◽  
Important Variable ◽  
Manufacturing Firms ◽  
Equity Capital ◽  
Market Valuation ◽  
The Impact ◽  
Retained Earnings

India witnessed significant development in stock market in the post 1990s due to series of reform measures. As result, firms are able to raise market based capital which helped them to reduce their dependence on institution based finance. Consequently, market valuation of the firm has become an important variable in corporate finance decisions. However, traditional theories of capital structure fail to offer unambiguous explanation on the impact of market value on capital structure. To bridge this lacuna in capital structure literature, Baker and Wrugler (2002) propounded market timing theory which argues that firms’ time the market, that is, firms raise equity capital when market valuation is high and buy back when market valuation is lower and hence the current capital structure of the firm is the cumulative result of past attempts to time the equity market. In this study we attempt to understand the role of market value in influencing the capital structure decisions of the manufacturing firms in India. We find that market value negatively influences the debt ratio both in short term and long term indicating the practice of market timing. Further, we find that negative impact does indeed come from changes in equity issues rather than changes in retained earnings or debt retirement.

scholarly journals Business Case for Integrated Reporting in the Nigerian Oil and Gas Sector

2013 ◽  
Vol 7 (1) ◽  
pp. 30 ◽  
Author(s):  
Tajudeen J. AYOOLA ◽  
Omoneye O. OLASANMI
Keyword(s):  
Best Practice ◽  
Oil And Gas ◽  
Secondary Data ◽  
Business Case ◽  
Business Strategies ◽  
Annual Reports ◽  
Integrated Reporting ◽  
Performance Reporting ◽  
Oil And Gas Sector ◽  
Distorted Form

The oil and gas sector is the mainstay of the Nigerian economy, accounting for over 95% of its revenue. The study therefore examines the business case for the adoption of Integrated Reporting in the sector. Secondary data<br />were sourced from the annual reports and stand-alone sustainability reports of the six multinational companies operating in the Nigerian oil and gas sector. The results found that efforts to address environmental, social and governance reporting (ESG) were adhoc, short term and unrelated to the core activities of the corporations and as such were not integrated into their business strategies and model. Information on ESG was also duplicated over many medium in a haphazard and distorted form. The study therefore concluded that the introduction of integrated reporting will streamline performance reporting that is in line with international best practice in the sector.

scholarly journals Liquidity and Profitability Ratios on Growth of Profits of Listed Oil and Gas Firms in Nigeria

2021 ◽  
Vol 4 (3) ◽  
pp. 1-14
Author(s):  
Appah E. ◽  
Onowu J.U. ◽  
Tonye Y.
Keyword(s):  
Oil And Gas ◽  
Secondary Data ◽  
Annual Reports ◽  
Return On Equity ◽  
Correlational Design ◽  
Ex Post ◽  
Return On Capital ◽  
Ex Post Facto ◽  
Oil And Gas Firms ◽  
Profitability Ratios

This study empirically examined liquidity and profitability ratios on the growth of profit of listed oil and gas firms in Nigeria. The study employed ex-post facto and correlational design and the data was obtained from the annual reports of sample companies for the period 2014 to 2019. The secondary data obtained from the published financial statements of the sampled firms were analysed with descriptive, correlation matrix and multiple regression. The results obtained from the multivariate analysis suggested that current ratio, acid test ratio, gross profit ratio, net profit ratio, net working capital, return on assets, return on equity and return on capital employed do positively and significantly affect the growth of profit of listed oil and gas firms in Nigeria. The study concluded that liquidity and profitability ratios influence the growth of companies. The study therefore made the following recommendations amongst others that firms should use financial ratios to measure the level of corporate profit growth to comprehend the conditions of firms which may eventually affect the investment decisions.

scholarly journals Green Finance During the COVID-19 Pandemic and Beyond: Implications for Green Economic Recovery

2021 ◽  
Author(s):  
Abu Bakkar Siddik ◽  
Guang-Wen Zheng
Keyword(s):  
Financial Institutions ◽  
Commercial Banks ◽  
Negative Impact ◽  
Secondary Data ◽  
Policy Implications ◽  
Economic Recovery ◽  
Annual Reports ◽  
Green Finance ◽  
The Government ◽  
The Impact

The main purpose of study is to identify the impact of COVID-19 pandemic on the green financing of banks and non-bank financial institutions (NBFIs) in an emerging economy such as Bangladesh. Also, this study shows the green banking activities of the banks and NBFIs during the pandemic. To analyze the impact of the pandemic on green financing, secondary data were obtained from the quarterly and annual reports of Bangladesh Bank (BB) on green financing as well as the annual reports and websites of 61 banks and 34 NBFIs in Bangladesh for the period 2021&ndash;2019. Subsequently, the study deployed dependent t-test statistics, growth rate (year-on-year), descriptive statistics, relative percentage changes, and varying tables and graphs to analyze the obtained secondary data. The empirical findings revealed that during the COVID-19 pandemic, there was an increase in green finance for all banks and NBFIs compared to before the epidemic, indicating that the pandemic had no negative impact on the total green finance growth of all banks and NBFIs. On the other hand, compared to the pre-pandemic period, bank-wise growth in green financing was higher for state-owned commercial banks (SOCBs), specialized banks (SDBs), and private commercial banks (PCBs) but lower for foreign-owned commercial banks (FCBs) during the COVID-19 epidemic. This suggests that the pandemic does not affect the expansion of green finance by SOCBs, SDBs and PCBs but significantly impacted the growth of green financing by FCBs. Furthermore, the research findings showed that the total outstanding and classified loans within the green finance investment decrease for both banks and NBFIs during the COVID-19 pandemic. The results indicated that the Bangladeshi banks&rsquo; level of automation towards green banking were satisfactory during the pandemic. Therefore, major policy implications for the green economic recovery by the government, BB, and managers of the banks and financial institutions in emerging economies like Bangladesh were discussed.

scholarly journals Firm’s Engagement in Corporate Social Responsibilities in Nigeria

2018 ◽  
Vol 9 (4) ◽  
pp. 37
Author(s):  
A. C. Onuorah ◽  
B. A. Ozurumba
Keyword(s):  
Oil And Gas ◽  
Negative Impact ◽  
Positive Impact ◽  
Least Square ◽  
Annual Reports ◽  
Social Responsibilities ◽  
Independent Variables ◽  
Corporate Social ◽  
Oil And Gas Sector ◽  
Corporate Social Responsibilities

This study examined firms engagement in corporate social responsibilities in Nigeria using secondary data derived from the audited annual reports of the five (5) selected listed Oil and Gas Companies in Nigeria from 2008 - 2017. The study proxied firm’s involvement by Firm Age (FMA), Employee Turnover (EPT), Customers Satisfaction (CSF) and Reputation (RPT) as the independent variables, while Responsibility of firms in Nigeria was proxied by CSR as the dependent variable. The study applied GRETL software, and used Ordinary Least Square (OLS) for the estimation of the result. The results revealed that the independent variables: EPT, CSF and RPT have positive significant impact on CSR while FMA shows a negative impact. The coefficient of R-squared which is 0.935067 shows that all the independent variables have 94% positive impact on CSR while the coefficient of Adjusted R-squared, 0.931820 suggests that 93% of all independent variables could be explained by the changes in CSR. The study concludes that firm’s age is not a strong and powerful measure of CSR as it does not play a significant role in determining the CSR of oil and gas sector in Nigeria. Thus, it was recommended that the management of the selected oil and gas sector should maintain quality assets that are durable. This is necessitated by the potential of the organizations that have such assets to invest more substantial funds towards Corporate Social Responsibility.

scholarly journals Corporate Tax Operating Cash flow and Sales Growth and their Impact on Dividend Payout Ratio in Oil and Gas Companies Listed in Karachi Stock Exchange (KSE)

2021 ◽  
Vol 7 (4) ◽  
Author(s):  
Muhammad Waqas Ashraf ◽  
Habib Ullah ◽  
Muhammad Athar Bashir ◽  
Hafiz Muhammad Asghar
Keyword(s):  
Dividend Policy ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Secondary Data ◽  
Dividend Payout ◽  
Explanatory Variables ◽  
Dividend Distribution ◽  
Oil And Gas Companies ◽  
Retained Earnings ◽  
Oil And Gas Sector

Purpose: The purpose of this study is to comprehend the dynamics of dividend payout in Pakistan’s oil and gas sector. This study is an attempt to differentiate that what are factors force firms to distribute dividends instead of enhancing retained earnings. To draw the required results 13 listed oil and gas companies have been incorporated in this study and their 5 years’ data has been studied. Design/Methodology/Approach: This study is quantitative and secondary data has been used to extract results. The sources of the data are financial statements of the companies under study. Fixed and random effects of regression were used for data analysis. Findings: Based on this study, it can be concluded that the independent variables selected in this model have the power to explain the dependent variable by 45%, which means the results generated through this study can be given importance accordingly in the oil and gas sector of Pakistan. The explanatory variables were identified from the prior literature and then their impact on dividend payout ratio was studied. Implications/Originality/Value: It is evident from the results of the study that management can take necessary steps to formulate a mutually beneficial dividend policy that can enhance the strength and effectiveness of these explanatory variables to enforce a dividend policy that fulfils the expectations of both the investors and the company. The investors can also evaluate different factors that might have an impact on dividend distribution and they can also get the ability to determine dividend payout ratio which made the basis for decision making for investment in the given sector.

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