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Assets and Reported Profits of Oil and Gas Companies in Nigeria

Iwene, Samuel Ojo, Edori D. S.

Abstract

Assets are needed in any organisation that is into profit making, hence this study accessed how assets and reported profits relates in the Nigeria’s companies that are quoted in the oil and gas industry. Using the “ex-post facto” method on the population and five sampled. “Secondary data” were collected from the financial statement of the sampled companies. Analyses on the secondary data were made using the linear regression method. The findings show that non-current assets have no significant relationship with both profits before tax and profit for the year with significant values of 0.638 and 0.882 respectively. The study also found that inventory has significant relationship with profit before tax but insignificant relationship with profit for the year with probability values of 0.05 and 0.550 respectively. Recommendations made are that management of the quoted oil and gas companies in Nigeria should investigate why the insignificant relationship and put policies in place to ensure that the positive relationship becomes significant. The study concluded that a assets, on the average, has no significant relationship with reported profits.

Keywords

Non-Current Assets Inventory Profit Before Tax Profit for The Year

References

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