Oil And Gas Industry Value Chain Affected By Foreign Currency Transactions
Based on the researcher’s philosophy, methods and approach highlighted above, the following are means to achieve stated research objectives.
To examine the extent to which oil and gas companies engage in foreign currency transactions and translations and the impact of such on profitability.
Proposed Means to Achieve this Objective
The research will involve an investigation into aspects of the oil and gas industry value chain affected by foreign exchange exposure using extant literature and peer reviewed journal articles. As part of analysis, the researcher will engage in an examination of form 20-F comments by selected companies relating to the extent of foreign currency transactions and the impact of foreign currency exposure on profitability.
Further, ratio analysis is used to express one variable in terms of another. Ratios are applied in calculating stated profitability determinants. They include the return on total assets (ROTAt), The Profit margin (PMt) and the Equity multiplier (EMt). This is the aid the investigation into the impact of foreign exchange transactions on the major determinants of profitability of oil and gas companies. A regression Analysis of foreign exchange gains and losses and profitability is also conducted to achieve this objective.
To identify differences in IFRS and U.S GAAPs reporting requirements for foreign currency translation, conversion and exchange rate…