Petroleum Accounting Methods and Financial Performance of Quoted Oil Companies in Nigeria

2020 ◽  
pp. 145-163
Author(s):  
JN NWAIWU ◽  
SU OKORIE
Keyword(s):  
Central Bank ◽  
Financial Performance ◽  
Oil And Gas ◽  
Financial Statements ◽  
Series Data ◽  
National Bureau ◽  
Return On Equity ◽  
Oil Companies ◽  
Full Cost ◽  
Oil And Gas Companies

Exploration and production of oil and gas companies globally prepare their financial statements using either full cost or successful efforts historical accounting methods. Although, there have been numerous attempts by different standard setting organs to narrow the choice of accounting methods so that the financial statements of petroleum companies are more comparable, the question as to which historical accounting method provides investors with more informative numbers, and this should be mandated for all oil and gas companies is still unresolved. This study aimed to analyze empirically, the relationship between petroleum accounting methods and financial performance of quoted oil and natural gas companies in Nigeria. Time series data on different types of petroleum accounting methods an return on equity from 2009-2019 were collected from the central bank of Nigeria statistical bulletin, National Bureau of Statistics, Annual Central Bank of Nigerian reports and Federal Inland Revenue Service. Ordinary least regression analysis, Auto-Regressive Distribution Lag (ARDL) cointegration and error correction model was used in analyzing the data. The empirical results indicate that petroleum accounting methods significantly relate to financial performance; explaining about 79.3% of the total variation in return on equity. The empirical study therefore concludes that petroleum accounting methods has the potency to make significant contribution to financial performance and recommends that companies that need more asset value should use full cost method while companies that already have large assets should use successful effort method. Companies with low standard deviation should adopt full cost effort method in order to beef up their capital base.

scholarly journals ACCOUNTING INFORMATION QUALITY AND FIRM PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA

2021 ◽  
pp. 1-24
Author(s):  
T.C. Macgregor ◽  
E.A.L Ibanichuka
Keyword(s):  
Firm Performance ◽  
Central Bank ◽  
Information Quality ◽  
Oil And Gas ◽  
Accounting Information ◽  
Series Data ◽  
National Bureau ◽  
Earnings Per Share ◽  
Accounting Information Quality ◽  
Oil And Gas Companies

The aim of this study is to empirically analyze the relationship between accounting information quality and firm performance of oil and gas companies in Nigeria. Time series data on different types of accounting information quality and earnings per share from 2009-2018 were collected from central bank of Nigeria statistical bulletin, annual central bank of Nigeria reports, National Bureau of statistic and Federal Inland Revenue Service. Ordinary Least Square regression analysis, Autoregressive Distribution Lag, Co-integration, Augmented Dickey-Fuller Unit root test, Serial Correlation and Heteroskedasticity test and Error Correction model with the aid of E-view version 10. The empirical results indicate that accounting information quality significantly relate to firm performance; explaining abut 83.1% of total variation in earnings per share, audit lag and disclosure quality were each found to significantly relate to earnings per share. We therefore conclude that accounting information quality ahs the potency to make significant contribution to earnings per share and recommends that increased scrutiny by regulators (FRCN, CBN, SEC etc) over accounting flexibilities would help to curtail accounting discretions both deliberate and systematic so that accounting information in financial statements will faithfully represent the phenomena they purport to represent and future corporate scandals on oil and gas crises can be avoided.

scholarly journals ACCOUNTING INFORMATION QUALITY AND CORPORATE PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA

2021 ◽  
pp. 25-44
Author(s):  
T.C. Macgregor ◽  
J.N Nwaiwu
Keyword(s):  
Information Quality ◽  
Oil And Gas ◽  
Corporate Performance ◽  
Accounting Information ◽  
Return On Equity ◽  
Oil Companies ◽  
Qualitative And Quantitative ◽  
Accounting Information Quality ◽  
Oil And Gas Companies ◽  
The Relationship

But knowing the unknown and therefore estimating the relationship between accounting information quality and corporate performance are still a difficult task. The aim of this empirical study is to explore the relationship between the accounting information quality and corporate performance of oil and gas companies in Nigeria. Data on different types of accounting information quality and return on equity were primarily collected from the respondents and analyzed using ordinary least square regression analysis the data with the aid of statistical package for social sciences version 25.0. The empirical result indicates that accounting information quality significantly relate to return n equity; explaining about 85.1% of the total variation in return and equity. Relevance, faithful representation was each found to significantly relate to return on equity. The study empirically conclude that accounting information quality has the potency to make significant contribution to quoted financial performance of oil and gas companies and recommends that having investigated theoretical and empirical issues, also considering the findings and conclusion, the following recommendations were made: There should be need for preparers of accounting information to improve on the accounting information quality devoid of window dressing and creative accounting, regular disclosure, transparency and accountability of such accounting information is required since investors are sensitive to qualitative and quantitative accounting information in assessing the performance of quoted oil companies in and outside Nigeria. Also in line with qualitative and quantitative of accounting information quality, financial statements of quoted oil companies in Nigeria should be prepared and presented according to laid down regulations and ethical standards duly observed to ensure accounting information presented for among users, most and public consumption do represent the oil companies’ economic reality during reported periods.

scholarly journals MENINGKATKAN KINERJA KEUANGAN RETURN ON EQUITY (ROE) MELALUI RASIO STRUKTUR MODAL DEBT TO ASSET RATIO (DAR) DAN DEBT TO EQUITY RATIO (DER) PADA PT BANK MANDIRI TBK YANG TERDAFTAR DI BURSA EFEK INDONESIA

2021 ◽  
Vol 12 (1) ◽  
pp. 52-65
Author(s):  
Armalinda Armalinda
Keyword(s):  
Financial Performance ◽  
Quantitative Research ◽  
Time Series Data ◽  
Stock Exchange ◽  
Statistical Tests ◽  
Financial Statements ◽  
Coefficient Of Determination ◽  
Series Data ◽  
Return On Equity ◽  
Equity Ratio

This study aims to determine how much influence the Debt to Assets Ratio (DAR) and Debt to Equity Ratio (DER) have on the Return on Equity (ROE) of PT Bank Mandiri Tbk which are listed on the Indonesia Stock Exchange. The research design used in this research is associative/quantitative research. The population in this study is the annual financial statements of PT. Bank Mandiri Tbk for the period 2012-2019, while the sample was taken using time series data, namely the annual financial statements of PT. Bank Mandiri Tbk for the period 2012-2019 which consists of balance statements, income statements, and cash flow from funding activities from 2012 to 2019. The result of the coefficient of determination (R Square) is 0.813. This figure means that 0.813 or 81.3% of the diversity of data from financial performance data can be explained by the two independent variables, namely the Debt to Asset Ratio and the Debt to Equity Ratio. While the rest (1-0.813 = 0.817) or 18.7% is explained by other factors outside the study. The results of statistical tests show that the Asset Ratio and Debt to Equity Ratio together (simultaneously) have an effect on financial performance (Return on Equity).

scholarly journals International financial reporting standards (IFRS) adoption and oil & gas companies performance in Nigeria

2017 ◽  
Vol 5 (2) ◽  
pp. 146 ◽  
Author(s):  
Aminu Abdullahi ◽  
Musa Yelwa Abubakar ◽  
Sunusi Sa’ Ad Ahmad
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Reporting Quality ◽  
Easy Access ◽  
Debt Ratio ◽  
Return On Equity ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
Oil And Gas Companies

This study investigates the effect of IFRS adoption on the performance of oil and gas marketing companies in Nigeria. The study utilise financial statements of a sample of eight (8) oil and gas companies operating in the country. These companies were purposively selected due to availability of data. Firms’ performance was proxied by Profit Margin (PM), Return on Assets (ROA) and Return on Equity (ROE) ratios and were considered as dependent variables to be determined by reporting regime (RR) as independent variable. While Current Ratio (CR), quick Test (QT), Total Debt Ratio (TDR) Earnings per Share (EPS) and Equity Debt Ratio (EDR) are use as control variables. The ratios were computed and compared for 4 years (2010 to 2011) before mandatory IFRS adoption and 2012 to 2013 often mandatory adoption OLS, regression with help of eviews 9 was employed for the analysis. The study reveals IFRS adoption has not improved the performance of oil and gas companies in Nigeria. The paper recommended that, oil and gas companies should continue to comply with provisions of IFRS as it will improve their reporting quality which may also improve their performance as result of more investment flow, easy access to capital and comparability.

scholarly journals Financial Deepening And Financial Performance Of Deposit Money Banks In Nigeria

2019 ◽  
Vol 6 (11) ◽  
pp. 179-191
Author(s):  
Mulkat Ajibola Yusuff ◽  
Fatimah Olabisi Olaniran-Akinyele
Keyword(s):  
Private Sector ◽  
Financial Performance ◽  
Time Series Data ◽  
Negative Influence ◽  
Series Data ◽  
Financial Deepening ◽  
Return On Equity ◽  
Market Capitalization ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag

This study examines the effect of financial deepening on financial performance of Nigerian Deposit Money Banks using time-series data spanning 1990Q1-2017Q4. The financial performance is expressed by return on assets (ROA) and return on equity (ROE) with total bank liability, private sector credit and market capitalization as measure of financial deepening. The technique of analysis deployed is autoregressive distributed lag (ARDL) to co integration. The findings show that the effect of total bank liability is positive and significant. Market capitalization and private sector credit on the other hand exert negative and significant effect. The study concludes that financial deepening affect financial performance of Deposit Money Banks in Nigeria. It then recommends effective loan recovery strategy to mitigate the negative influence of private sector credit due to non-performing loans.

The Effect of Earnings Management on Dividend Policy in Pakistan

2017 ◽  
Vol 9 (1-3) ◽  
Author(s):  
Faiza Saleem ◽  
Mohd Norfian Alifiah
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Annual Data ◽  
Cross Sectional ◽  
Return On Equity ◽  
Dividend Payments ◽  
Oil And Gas Companies ◽  
The Impact

The aim of this study was to find out the impact of earnings management on dividend policy of oil and gas companies listed at the Karachi stock exchange. The study uses annual data of oil and gas companies for the period from 2008 to 2015. The dependent and independent variables are dividend policy and earnings management and the three control variables are leverage, return on equity and firm size. Modified cross sectional Jones model (1995) was used for calculating discretionary accruals which has been used as proxy for earnings management whereas measurement of dividend policy has been proxy by dividend payout. The findings from regression analysis indicate that earnings management has insignificant relationship with dividend policy of selected firms in Pakistan. Financial crisis in the world and economic decline period are the main reasons of this relationship. In the decline period the firms try to increase manipulation in earnings as a result the company starts reducing dividend payments. It is concluded that there are some other factors that may influence the pattern of dividend payment in the firms.

Divisions plague Libya's financial institutions

2016 ◽  
Keyword(s):  
Central Bank ◽  
Financial Institutions ◽  
Oil And Gas ◽  
Political Crisis ◽  
The Political ◽  
Economic Policies ◽  
Strong Basis ◽  
Content Type ◽  
Basic Services ◽  
Oil And Gas Companies

Subject Divisions in financial institutions. Significance The finance ministry of the UN-backed Government of National Accord (GNA) on December 21 called for an urgent meeting of the board of the Central Bank of Libya. More effective financial institutions could provide a strong basis for political reunification and economic revival. Yet the political crisis, corruption and pre-existing weaknesses undermine these institutions. Impacts The GNA will struggle to finance consistent basic services and implement coherent economic policies. Libyans will continue to lose confidence in the GNA, especially if the economy does not pick up. The NOC will still court international oil and gas companies to attract new investment.

scholarly journals TAX RISKS IN THE OIL AND GAS SECTOR OF THE RUSSIAN ECONOMY 

2019 ◽  
Author(s):  
А.Х. Цакаев ◽  
А.Р. Батукаева
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Russian Economy ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Представлены результаты оценки налогового риска ПАО НК Роснефть , ПАО Газпром и ПАО ЛУКОЙЛ согласно общедоступным критериям самостоятельной оценки рисков для налогоплательщиков Концепции планирования выездных налоговых проверок, исходя из данных консолидированной финансовой отчетности, подготовленной в соответствии с международными стандартами финансовой отчетности, позволившие сделать вывод о предложении по преобразованию данной Концепции под международные стандарты финансовой отчетности. Сформулированы предложения по обеспечению снижения уровня налоговых рисков в деятельности российских нефтегазовых компаний Results of assessment of tax risk of PJSC Rosneft, PJSC Gazprom and PJSC Lukoil according to public criteria of independent risk assessment for taxpayers of the Concept of planning of exit tax audits, proceeding from data of the consolidated financial statements prepared according to International Financial Reporting Standards, allowed to draw a conclusion on the offer on transformation of this Concept under International Financial Reporting Standards are presented. Offers on ensuring decrease in level of tax risks in activity of the Russian oil and gas companies are formulated.

scholarly journals Materiality Conditions in the Interplay between Environment and Financial Performance: A Graphical Modeling Approach for EEA Oil and Gas Companies

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Mirela Sichigea ◽  
Marian Siminica ◽  
Mirela Cristea ◽  
Gratiela Georgiana Noja ◽  
Daniel Circiumaru
Keyword(s):  
Financial Performance ◽  
Graphical Models ◽  
Structural Equation ◽  
Oil And Gas ◽  
Strong Dependence ◽  
Sustainable Growth ◽  
Equation Modeling ◽  
Main Concept ◽  
Thomson Reuters ◽  
Oil And Gas Companies

The recovery after the unprecedented pandemic crisis that Europe has currently been facing is strengthening the strong dependence between social, economic, and environmental fields, maintaining green investments and innovation at the core of the European strategies. Shifting to clean industries is a challenging mission that a complex network of stakeholders and their different interests must take into account. Within this network, the interplay between environmental and financial performance of a company represents a common point with a growing emphasis on the transparency and the materiality capacity of the disclosed information. This paper uses the Structural Equation Modeling and the Gaussian Graphical Models as graphical analysis approaches and offers a first insight about the interaction between environmental materiality measures and financial performance. A preliminary step of the scientific research consisted of a hand-mapping investigation about materiality conditions. Starting from the Materiality Map developed by the Sustainability Accounting Standards Board (SASB), this paper extends the main concept about materiality and investigates it on three different content ranges, which focus on the general environmental policy of the company, the targets set, and its concrete footprint. The methodology approaches were grounded on a newly compiled dataset provided by the Thomson Reuters database for 194 Economic European Area (EEA) oil and gas companies. The results provide significant evidences for the manifestation of materiality and emphasize the informational content of the individual environmental measures as an important condition for its financial impact. Adding to the environmental-financial performance relationship, our findings have both practical and academic relevance for the economic field and sustainable growth goals.

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