Live Covid-19
United States 100,863,106
Cases: 100,863,106
Deaths: 1,106,860
Recovered: 98,283,998
Active: 1,472,248
India 44,674,667
Cases: 44,674,667
Deaths: 530,630
Recovered: 44,138,554
Active: 5,483
France 38,067,974
Cases: 38,067,974
Deaths: 159,093
Recovered: 36,974,097
Active: 934,784
Germany 36,557,861
Cases: 36,557,861
Deaths: 158,198
Recovered: 35,913,000
Active: 486,663
Brazil 35,408,852
Cases: 35,408,852
Deaths: 690,231
Recovered: 34,262,104
Active: 456,517
South Korea 27,331,250
Cases: 27,331,250
Deaths: 30,769
Recovered: 26,382,172
Active: 918,309
Japan 25,220,452
Cases: 25,220,452
Deaths: 50,344
Recovered: 20,754,250
Active: 4,415,858
Italy 24,488,080
Cases: 24,488,080
Deaths: 181,733
Recovered: 23,799,178
Active: 507,169
United Kingdom 24,024,746
Cases: 24,024,746
Deaths: 197,253
Recovered: 23,754,601
Active: 72,892
Russia 21,617,601
Cases: 21,617,601
Deaths: 392,231
Recovered: 21,018,980
Active: 206,390
Turkey 17,005,537
Cases: 17,005,537
Deaths: 101,400
Recovered:
Active: 16,904,137
Spain 13,614,807
Cases: 13,614,807
Deaths: 116,108
Recovered: 13,403,322
Active: 95,377
Vietnam 11,517,722
Cases: 11,517,722
Deaths: 43,177
Recovered: 10,608,922
Active: 865,623
Australia 10,754,429
Cases: 10,754,429
Deaths: 16,244
Recovered: 10,546,102
Active: 192,083
Argentina 9,739,856
Cases: 9,739,856
Deaths: 130,034
Recovered: 9,590,198
Active: 19,624
Netherlands 8,544,770
Cases: 8,544,770
Deaths: 22,920
Recovered: 8,498,809
Active: 23,041
Taiwan 8,369,226
Cases: 8,369,226
Deaths: 14,478
Recovered: 8,036,406
Active: 318,342
Iran 7,559,855
Cases: 7,559,855
Deaths: 144,640
Recovered: 7,335,301
Active: 79,914
Mexico 7,132,792
Cases: 7,132,792
Deaths: 330,525
Recovered: 6,400,759
Active: 401,508
Indonesia 6,680,203
Cases: 6,680,203
Deaths: 159,978
Recovered: 6,469,238
Active: 50,987
Poland 6,354,402
Cases: 6,354,402
Deaths: 118,340
Recovered: 5,335,940
Active: 900,122
Colombia 6,318,021
Cases: 6,318,021
Deaths: 141,911
Recovered: 6,142,640
Active: 33,470
Austria 5,576,695
Cases: 5,576,695
Deaths: 21,232
Recovered: 5,508,210
Active: 47,253
Portugal 5,546,290
Cases: 5,546,290
Deaths: 25,517
Recovered: 5,500,769
Active: 20,004
Greece 5,404,690
Cases: 5,404,690
Deaths: 34,309
Recovered: 5,338,821
Active: 31,560
Ukraine 5,341,284
Cases: 5,341,284
Deaths: 110,586
Recovered: 5,216,858
Active: 13,840
Malaysia 5,000,332
Cases: 5,000,332
Deaths: 36,713
Recovered: 4,941,114
Active: 22,505
Chile 4,937,047
Cases: 4,937,047
Deaths: 62,571
Recovered: 4,858,162
Active: 16,314
North Korea 4,772,813
Cases: 4,772,813
Deaths: 74
Recovered: 4,772,739
Active: 0
Israel 4,727,322
Cases: 4,727,322
Deaths: 11,878
Recovered: 4,704,016
Active: 11,428

Effect of Corporate Charges on Earnings of Oil and Gas Firms in Nigeria

Effect of Corporate Charges on Earnings of Oil and Gas Firms in Nigeria

ABSTRACT

This study investigated the effect of corporate charges on the earnings of oil and gas firms listed on the Nigeria Stock Exchange. Specifically, the study examined the effect of audit fees, and interest expenses, Panel data were extracted from the annual reports and financial statements of the firms and analyzed using descriptive statistics and panel data regression analysis. Findings from the study indicate that the effect of audit fees and insurance expenses on earnings per share of the firms are positive and statistically significant. Findings equally show that the effect of interest expense on earnings per share is negative, but statistically non-significant while the effect of licenses/levies on earnings per share is positive and statistically non-significant. These findings imply that earnings per share of the firms will rise as audit fees while will fall as interest expenses on borrowed funds increase. Based on these findings, the study recommended that a reasonable audit fee should be paid to the external auditors annually during the audit of the accounts and financial statements of the oil and gas firms. This is to maintain auditors’ independence, prevent earnings management and boast the real earnings of the oil and gas firms.  It was also recommended that each oil and gas firm should determine its optimal capital structure to borrow within the optimal structure. More importantly, the firms should properly negotiate the terms of their debt before any borrowing to bring down interest expenses on borrowed funds. It was further recommended that the firms should pay their licenses/levies as at and when due. This will give them the necessary legal rights to acquire properties, explore, mine, and produce oil and gas without interference from the government or property owners. Finally, it was recommended that the oil and gas firms should pay adequate insurance premiums annually to cover their various risks such as fire, property insurance, motor vehicle, and life of workers among others. Adequate premium will ensure that enough claims are paid by the insurer to the insured to stabilize earnings in the event of the occurrence of the events insured against.

Keywords: Corporate Charges, Earnings, Oil and Gas Firms, Nigeria

Authorship

Edeh, Anthony Azubuike-Chinedu; Nnachi, Justina Akoyeke and Prof. Okwo, Ifeoma Mary |  Full PDF

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