OPERATING SEGMENTS PERFORMANCE AND FIRM VALUE OF SELECTED OIL AND GAS COMPANIES IN NIGERIA (2014-2018)

OPERATING SEGMENTS
PERFORMANCE AND FIRM
VALUE OF SELECTED OIL AND
GAS COMPANIES IN NIGERIA
(2014-2018)
Mbu-Ogar, Geraldine B.
Department of Accounting
University of Calabar, Calabar
geraldineokafa@ gmail.com
ABSTRACT
Firm’s expansion into different businesses,
product lines and geographical areas are
evidence of growth potentials in any
organizational setting. IFRS 8 “ Operating
Segments” brought to the fore the
importance of analyzing, disclosing and
reporting the performance of firms
operating segments which resources have
been allocated for informed decision
making. This paper examines operating
segments performance and firm value ofBook of Abstract
selected quoted Oil and Gas Companies in
Nigeria for the period (2014-2018). Data
for the study were secondary data
obtained from Oil and Gas Companies
which had information pertaining to their
product / service segments disclosed in
the financial statements for the period.
The survey research design was adopted
for the study and the simple linear
regression model was utilized in analyzing
the data. Results from the hypotheses
tested revealed a significant relationship
between operating segments revenue and
return on investments while a non-
significant or inverse relationship exist
between segments operating profits and
return on investment. The paper
recommends that Oil and Gas Companies
should implore strategies aimed at
improving competitiveness in its business
environment and adopt cost effective
systems in order to enhance its revenue
and operating profit base to impact on
Companies returns. Second, segments
should be evaluated from time to time to
ascertain its performance so that
resources can be efficiently allocated to
very profitable segments for enhanced
firm value.
Keywords: Operating Segments, Revenue,
Operating Profit, Firm Value (ROI)

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