Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK
Owing to risk and uncertainties, and the significant capital investments required for oil and gas investments, companies operating in the oil and gas industry are unique in comparison with companies in other industries. Oil and gas reserves and decommissioning of oil and gas assets represent the mos...
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| Format: | Thesis (University of Nottingham only) |
| Language: | English |
| Published: |
2021
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| Online Access: | https://eprints.nottingham.ac.uk/65543/ |
| _version_ | 1848800240195338240 |
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| author | Alshahmy, Suliman Salem |
| author_facet | Alshahmy, Suliman Salem |
| author_sort | Alshahmy, Suliman Salem |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Owing to risk and uncertainties, and the significant capital investments required for oil and gas investments, companies operating in the oil and gas industry are unique in comparison with companies in other industries. Oil and gas reserves and decommissioning of oil and gas assets represent the most significant cash flow in the oil and gas industry. Thus, with uncertainty of reserves and decommissioning, investors have to rely on the disclosures of oil and gas firms to determine an estimated value that would translate into future cash inflows to the company. The aim of this study is to examine the impact of oil and gas reserve disclosures and disclosures of decommissioning costs of oil and gas assets on the financial performance and value of oil and gas companies listed in the UK. This study uses qualitative and quantitative approaches to address the main research objective. The total sample included 52 companies under upstream exploration and production of oil and gas. Both descriptive statistics and inferential statistics were used to test the hypotheses developed. The findings revealed that mandatory and voluntary decommissioning and reserve disclosures influence the value and performance of oil and gas companies listed in the UK. In addition, firm-specific characteristics impact on the relationship between disclosure level and the firm’s value and performance. The results were verified by interviews with experts from the oil and gas industries. The interview outcomes supported the study’s statistical results and provided even deeper and logical explanation for reserves and decommissioning disclosures influencing oil and gas firms’ performance and value. The findings contribute to the bridging of gaps in the literature and provide ways potentially to increase the level of disclosure among oil and gas companies. In addition, the findings enable better valuation of companies and increase investors’ support to oil and gas firms leading to long-term sustainable performance. |
| first_indexed | 2025-11-14T20:48:25Z |
| format | Thesis (University of Nottingham only) |
| id | nottingham-65543 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:48:25Z |
| publishDate | 2021 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-655432023-12-12T04:30:12Z https://eprints.nottingham.ac.uk/65543/ Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK Alshahmy, Suliman Salem Owing to risk and uncertainties, and the significant capital investments required for oil and gas investments, companies operating in the oil and gas industry are unique in comparison with companies in other industries. Oil and gas reserves and decommissioning of oil and gas assets represent the most significant cash flow in the oil and gas industry. Thus, with uncertainty of reserves and decommissioning, investors have to rely on the disclosures of oil and gas firms to determine an estimated value that would translate into future cash inflows to the company. The aim of this study is to examine the impact of oil and gas reserve disclosures and disclosures of decommissioning costs of oil and gas assets on the financial performance and value of oil and gas companies listed in the UK. This study uses qualitative and quantitative approaches to address the main research objective. The total sample included 52 companies under upstream exploration and production of oil and gas. Both descriptive statistics and inferential statistics were used to test the hypotheses developed. The findings revealed that mandatory and voluntary decommissioning and reserve disclosures influence the value and performance of oil and gas companies listed in the UK. In addition, firm-specific characteristics impact on the relationship between disclosure level and the firm’s value and performance. The results were verified by interviews with experts from the oil and gas industries. The interview outcomes supported the study’s statistical results and provided even deeper and logical explanation for reserves and decommissioning disclosures influencing oil and gas firms’ performance and value. The findings contribute to the bridging of gaps in the literature and provide ways potentially to increase the level of disclosure among oil and gas companies. In addition, the findings enable better valuation of companies and increase investors’ support to oil and gas firms leading to long-term sustainable performance. 2021-08-04 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/65543/1/Final%20copy%20Copy%20of%20June%202021.pdf Alshahmy, Suliman Salem (2021) Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK. PhD thesis, University of Nottingham. oil and gas sector; oil and gas companies; investment; decommissioning; UK; reserve disclosures |
| spellingShingle | oil and gas sector; oil and gas companies; investment; decommissioning; UK; reserve disclosures Alshahmy, Suliman Salem Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK |
| title | Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK |
| title_full | Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK |
| title_fullStr | Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK |
| title_full_unstemmed | Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK |
| title_short | Impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the UK |
| title_sort | impact of reserve and decommissioning disclosures on value and performance of listed oil companies in the uk |
| topic | oil and gas sector; oil and gas companies; investment; decommissioning; UK; reserve disclosures |
| url | https://eprints.nottingham.ac.uk/65543/ |