EMPIRICAL REVIEW OF INTANGIBLE ASSETS ON FINANCIAL PERFORMANCE OF LISTED OIL AND GAS SECTOR IN NIGERIA
Keywords:
Intangible Assets, Leverage, Firm Size, Return on Assets, Return on Capital Employed, Return on EquityAbstract
The Study examined the empirical review of intangible assets on financial performance of Listed Oil and Gas Sector in Nigeria. The specific objectives were to identify the effect of intangible assets (LITA) on return on assets (ROA) of listed oil and gas sector in Nigeria, evaluate the effect of intangible assets (LITA)) on return on equity (ROE) of listed oil and gas sector in Nigeria and examine the effect of intangible assets (LITA) on return on capital employed (ROCE) of listed oil and gas sector in Nigeria. The independent variable intangible assets proxied by log of intangible assets (LITA) while dependent variable financial performance proxied by return on assets (ROA), return on equity (ROE) and return on capital employed (ROCE). The ex-post facto research design which made use of secondary data drawn from the annual report and accounts of four (4) companies in listed oil and gas sector in Nigerian economy covering a period of ten (10) years from 2009 to 2018 both years inclusive. The theory in which this study pinned on was signaling theory. The E-views version 9.0 software statistical package was used to run the Panel ordinary least square (OLS) for the study. The multiple regression model was applied in determining the extent of the effect of independent variable (intangible assets) with control variables (firm size and leverage) on dependent variable (financial performance) of companies’ under consideration. The result of the regression analysis revealed that intangible assets (LITA) have positive and insignificant effect on return on assets (ROA), return on equity (ROE) and return on capital employed (ROCE) of listed oil and gas sector in Nigeria. Based on the findings, the researcher recommended that the firms should control and monitor the intangible assets of the companies by ensuring that all recorded items are actual prices in order to reduce the effect on return on assets for the business.
