Abstract
This research aims to investigate and assess the influence of crude oil price volatility on firms' accounting profits (measured by return on assets [ROA], return on equity [ROE], and net profit margin [NPM]) and market performance (indicated by stock returns). Additionally, this research investigates if a size of a firm, risk-taking behavior, global financial crisis, and oil price crash play a role in a company's accounting profits and market performance. This research is conducted using a multiple regression model with panel data with the profitability ratios (ROA, ROE, and NPM) as dependent variables and oil price, firm size, risk-taking behavior, global financial crisis, and oil price crash as independent variables. Data are gathered from 41 samples of listed oil and gas companies in Southeast Asia and Australia and divided into exploration and production and non-exploration and production companies to obtain objective results. This research reveals that oil price, risk-taking behavior, firm size, global financial crisis, and oil price crash significantly influence accounting profits and market performance, with mixed relationships individually. The results of this research will provide a meaningful contribution for researchers assessing determinant factors on accounting profits and market performance of oil and gas companies.
Original language | English |
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Title of host publication | Business and Management Issues in the Global and Digital Era |
Subtitle of host publication | Indonesian Perspectives |
Publisher | Nova Science Publishers, Inc. |
Pages | 155-171 |
Number of pages | 17 |
ISBN (Electronic) | 9781536165302 |
ISBN (Print) | 9781536162752 |
Publication status | Published - 11 Nov 2019 |
Keywords
- Accounting profits
- Firm size
- Oil and gas companies
- Oil price
- Risk-taking
- Stock returns