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Articles

Vol. 6 No. 2 (2024): Research Journal of Financial Sustainability Reporting (RJFSR)

Effect of Non-Current Asset on Shareholder’s Fund of Oil and Gas Firms in Nigeria

Submitted
November 30, 2024
Published
2024-11-30

Abstract

Objective: This study examined the effect of non-current assets on shareholders' funds in Nigerian oil and gas firms. Specifically, it evaluated the impact of land and buildings, as well as plant and machinery, on shareholders' equity.

Methodology: Data were collected from the annual reports of sampled firms and analyzed using multiple regression analysis to determine the relationship between non-current assets and shareholders' funds.

Findings: The results revealed that both land and buildings (LB) and plant and machinery (PM) have positive and significant effects on shareholders' funds (SHF) in Nigerian oil and gas firms. This indicates that investments in these non-current assets contribute meaningfully to shareholder value.

Conclusion: Investments in land, buildings, and machinery are crucial for enhancing shareholders' wealth in the oil and gas sector. These long-term assets increase future returns, thereby strengthening shareholders' equity.

Recommendation: Nigerian oil and gas firms should prioritize substantial investments in land and buildings to boost shareholders' funds. Such long-term assets not only improve future profitability but also enhance overall shareholder wealth.