FIRM SPECIFIC DETERMINANTS OF ASSET TANGIBILITY: EMPHASIS ON OIL AND GAS MULTINATIONALS

Authors

  • OMERESA, Emmanuel Department of Accounting, Delta State University Abraka Nigeria
  • EBIAGHAN Orits Frank (PhD.) Department of Accounting, Delta State University Abraka Nigeria

Abstract

The study assessed the factors that influence asset tangibility across ten listed oil and gas businesses in Nigeria. Because they were pertinent to the main idea of the study, the agency theory, stakeholder theory, and resource-based theory served as the study's pillars. Since the data being examined are secondary in nature, the study used an ex-post facto research approach. the analysis derived from the 2013–2022 financial statements of each of the ten multinationals involved in the oil and gas industry. In the interim, the Generalized Linear Model is the estimating method used. The study demonstrated that, throughout the years under examination, asset tangibility of oil and gas businesses in Nigeria was positively and significantly impacted by return on asset and firm age. In contrast, throughout the years under examination, company size had a favorable and negligible impact on the tangibility of the assets of Nigerian oil and gas businesses. Finally, during the years under study, leverage financing had a negative but notable impact on the tangibility of oil and gas businesses' assets in Nigeria. Hence, the study concludes that, profitability, firm age, and leverage financing are determinants of asset tangibility of firms in the oil and gas industry in Nigeria. Consequently, the study submits that, for oil and gas companies in Nigeria to achieve more profitable, the management of oil and gas companies are advised to address the issue of high asset substitution, information asymmetry, non-transferability/ irreversibility coupled with the low second-hand value associated with the usage of intangible assets.

Keywords: Firm Specific, Determinants, Asset Tangibility, Oil & Gas Industry.

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Published

01-12-2023 — Updated on 01-12-2023

Issue

Vol. 1 No. 3 (2023)

Section

Articles

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