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Growth and Financial Performance Governance by the Total Resources: A Case of Indian Downstream Oil and Gas Firms

Author

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  • Anis Ali

    (College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia)

  • Nadeem Fatima

    (College of Business Administration, Prince Sattam Bin Abdulaziz University, Al Kharj, Saudi Arabia)

Abstract

The total resources of the business organizations define the size of the operational activities and provide the base for the revenue and availability of the working capital for the business activities. The oil and gas industry provides a base for the manufacturing and processing sector in India. Downstream oil and gas firms play a vital role in processing crude oil and gas and procuring it for final consumers. The study is intended to get the degree and direction of governance of the financial performance of the downstream Indian oil and gas firms. The study is based on secondary data while financial ratios, index numbers, post hoc homogeneity, and correlation are calculated to get the financial performance, movement trend, sensitivity of movement, and governance of the financial performance measures by the total resources in downstream Indian oil and gas firms. The study found that the growth of the total resources affects the profit-earning capacity and return on total resources in downstream Indian oil and gas firms positively but negligibly. There is moderate sensitivity between the growth of total resources and short-term paying ability while no relationship between the total resources and solvency of firms in downstream Indian oil and gas firms. The finding of the study concludes that investment in the total resources can be increased to get the benefits of profitability and profits, ultimately. But, the investment in the smaller downstream Indian oil and gas firms is more profitable than the investment in the larger downstream Indian oil and gas firms.

Suggested Citation

  • Anis Ali & Nadeem Fatima, 2023. "Growth and Financial Performance Governance by the Total Resources: A Case of Indian Downstream Oil and Gas Firms," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 141-148, May.
    • Handle: RePEc:eco:journ2:2023-03-17
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    References listed on IDEAS

    as
    1. Anis Ali & Abdul Rahman Shaik, 2022. "Effect of Debt Financing on Firm Performance: A Study on Energy Sector of Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 10-15, November.
    2. Oh, Chang Hoon & Kim, Minyoung & Shin, Jiyoung, 2019. "Paths and geographic scope of international expansion across industries," International Business Review, Elsevier, vol. 28(3), pages 560-574.
    3. Binlei Gong, 2020. "Effects of Ownership and Business Portfolio on Production in the Oil and Gas Industry," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    4. Joseph Mbawuni & Mercy Mbawuni & Simon Nimako, 2016. "The Impact of Working Capital Management on Profitability of Petroleum Retail Firms: Empirical Evidence from Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(6), pages 1-49, June.
    5. Kang, Wensheng & Perez de Gracia, Fernando & Ratti, Ronald A., 2017. "Oil price shocks, policy uncertainty, and stock returns of oil and gas corporations," Journal of International Money and Finance, Elsevier, vol. 70(C), pages 344-359.
    6. Ashutosh Sheel & Y.P. Singh & Vishnu Nath, 2020. "Managing agility in the downstream petroleum supply chain," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 20(2), pages 269-294.
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    Cited by:

    1. Anis Ali & Abdulrahman Alhassun & Nadeem Fatima, 2024. "Financial Performance and Total Resources: Trend and sensitivity Analysis of Indian Oil Exploration and Production Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 533-540, May.

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    More about this item

    Keywords

    Downstream; Oil and gas firms; Total resources; Profitability; Financial governance; Solvency; Post Hoc homogeneity;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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