Effect of Environmental Cost Disclosure on Profitability of Listed Oil and Gas Firms in Nigeria

Ghana is relatively new to oil and gas extraction and there is little empirical knowledge about the key players in the oil and gas business, what they do to contribute to local socio-economic development, and the quandaries these firms struggle with while operating under difficult circumstances. The purpose of this study was to assess the contribution of international oil companies to local development in Ghana and to evaluate the challenges and dilemmas faced by these firms. The study adopted a qualitative, interpretive case study design that relied on face-to-face interviews and focus group discussions to gather primary data. Interview responses were analysed, compared, and categorised with the results of transcription of the focus group discussions, and later triangulated and interpreted to draw conclusions. The study revealed that most international oil companies in Ghana are transparent in reporting on their business activities and operations. Despite the efforts by these firms to support local development by funding developmental projects, paying taxes, and providing employment opportunities to local youth, international oil companies are still a target of criticism for unsatisfactory performance. Local populations would like to see extractive firms finance community infrastructural projects matching with local priority needs and focus more on impact rather than the quantity of money disbursed or the number of projects funded. International oil companies should change their engagement approach from a mere consultation to a realistic, democratic, and broad-based involvement of the publics. This study has enriched existing frameworks applied to evaluate business organisations’ contributions to local development.

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Extreme events: a study of small oil and gas firms

Accounting and Finance ◽

10.1111/j.1467-629x.2012.00478.x ◽

2012 ◽

Vol 53 (3) ◽

pp. 809-836 ◽

Cited By ~ 7

Author(s):

Jan M. Smolarski ◽

Jose G. Vega

Keyword(s):

Extreme Events ◽

Oil And Gas ◽

Oil And Gas Firms

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The Effects of Oil and Gas Risk Factors on Malaysian Oil and Gas Stock Returns: Do They Vary?

Energies ◽

10.3390/en13153901 ◽

2020 ◽

Vol 13 (15) ◽

pp. 3901 ◽

Cited By ~ 1

Author(s):

Mohammad Enamul Hoque ◽

Soo-Wah Low ◽

Mohd Azlan Shah Zaidi

Keyword(s):

Risk Factors ◽

Stock Returns ◽

Oil And Gas ◽

Market Value ◽

Negative Effects ◽

Firm Level ◽

Stock Size ◽

Positive Effects ◽

Oil And Gas Firms ◽

Gas Price

This study explores Malaysian oil and gas stocks’ exposure to oil and gas risk factors, paying special attention to subindustry classification, stock size, book-to-market value, and volatility state. The study employs firm-level weekly frequency data of oil and gas firms and several multi-asset pricing models within a GARCH (1,1)-X and Markov-switching framework. The empirical findings reveal that oil price, gas price, and exchange rate exhibit positive effects on the stock returns of all oil and gas sub-industries, but they exhibit negative effects on gas utilities sub-industry stock returns. The empirical findings also reveal that the extent of this effect varies across sub-industry, stock size, book-to-market value, and volatility states. Thus, the findings suggest the existence of asymmetric, heterogeneous, and non-linear exposures.

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Socially Responsible Investment (SRI) initiatives in developing economies: Challenges faced by oil and gas firms in Ghana

Cogent Business & Management ◽

10.1080/23311975.2019.1666640 ◽

2019 ◽

Vol 6 (1) ◽

pp. 1666640 ◽

Cited By ~ 2

Author(s):

Mawuena Akosua Cudjoe ◽

Ahmed Razman Abdul Latiff ◽

Nor Aziah Abu Kasim ◽

Mohammad Noor Hisham Bin Osman

Keyword(s):

Oil And Gas ◽

Developing Economies ◽

Socially Responsible Investment ◽

Socially Responsible ◽

Responsible Investment ◽

Oil And Gas Firms

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The Determinants of Capital Structure: Empirical Analysis of Oil and Gas Firms during 2000-2015

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v9i1.9359 ◽

2017 ◽

Vol 9 (1) ◽

pp. 1 ◽

Cited By ~ 2

Author(s):

Aws Yousef Shambor

Keyword(s):

Financial Crisis ◽

Capital Structure ◽

Oil And Gas ◽

Global Financial Crisis ◽

Agency Cost ◽

Tax Shield ◽

Debt Tax Shield ◽

The Global Financial Crisis ◽

Oil And Gas Firms ◽

The Capital Structure

This study investigates the capital structure determinants of 346 oil and gas firms that are the constituents of the Global Oil and Gas Index (OILGSWD) over the period of 2000 – 2015, taking into account the effect of the Global Financial Crisis of2007-2009 on the determinants of the capital structure. Thus, six firm level explanatory variables (namely: liquidity, profitability, growth, non-debt tax shield, tangibility and size) are selected and regressed against the appropriate capital structure measure, leverage, the ratio of total debt to book value of total assets. The data is collected from secondary sources depending on the data from the DataStream database. The major findings of the study indicate that tangibility, profitability, size, liquidity and non-debt tax shield are the significant determinants of capital structure of oil and gas firms, while growth is considered insignificant. The capital structure is analyzed in terms of the three main theories of capital structure: Trade-off theory, Pecking order theory, and Agency cost theory. Finally, the global financial crisis has to some extent a significant impact on the capital structure determinants of oil and gas firms and has no significant impact on liquidity, as indicated by the OLS regression analysis results.

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Lower oil prices raise risk of US oil firms defaulting

Emerald Expert Briefings ◽

10.1108/oxan-db251686 ◽

2020 ◽

Keyword(s):

Oil And Gas ◽

Oil And Gas Industry ◽

Cash Flows ◽

Transport Sector ◽

Carbon Intensity ◽

Content Type ◽

The Us ◽

Distressed Firms ◽

Exploration And Production ◽

Oil And Gas Firms

Subject US energy bond market. Significance The US benchmark, the West Texas Intermediate crude oil price, has slumped to 20-30 dollars per barrel in the second half of this month as the impacts of the COVID-19 outbreak have reduced demand and the breakdown of OPEC+ talks earlier this month increased supply. The price war between Saudi Arabia and Russia will exert great pressure on the oil and gas industry, which was already facing slower growth because businesses and the transport sector are reducing the carbon intensity of their activity. Impacts If US exploration and production firms cut investment, already distressed firms in ancillary areas such as oilfield services will suffer. Unemployment in the US shale industry could increase sharply. US oil and gas firms will try to protect their cash flows by, for example, selling assets, cutting dividends and raising fresh capital.

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Identifying and Coping with Balance Sheet Differences: A Comparative Analysis of U.S., Chinese, and French Oil and Gas Firms Using the “Statement of Financial Structure”

Issues in Accounting Education ◽

10.2308/iace.2007.22.4.591 ◽

2007 ◽

Vol 22 (4) ◽

pp. 591-606

Author(s):

Yuan Ding ◽

Gary M. Entwistle ◽

Hervé Stolowy

Keyword(s):

Oil And Gas ◽

Financial Analysis ◽

Balance Sheet ◽

Financial Structure ◽

The United States ◽

Business Environment ◽

Business World ◽

National Boundaries ◽

Local Business Environment ◽

Oil And Gas Firms

In a globalized business world it is often necessary to compare companies across national boundaries. This comparison often includes an examination of financial statements. While the harmonization of accounting standards continues to progress, there still remain differences in how accounting information is reported between companies located in different countries, especially with regard to the format used to present the balance sheet. It is consequently important that students be able to both identify these differences, and have a method for coping with them. Using three oil and gas firms from three different countries (Exxon in the United States, Sinopec in China, and Total in France), this paper provides a setting for students to identify differences in balance sheet formats across countries. The paper then introduces a standardizing model—the Statement of Financial Structure—that enables students to cope with these differences. In working with this Statement, students develop their financial analysis skills. In particular, the concept of working capital is reinforced, as is the importance of understanding the local business environment in order to interpret the numbers and ratios within the proper context.

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