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Attractiveness of Large Oil Companies for External Investors in 2004-2013

Author

Listed:
  • Nurlan, NURSEIIT

    (Associated Professor of the Kazakh-American University (KAZAKHSTAN))

  • Darmen, SADVAKASOV

    (Senior Partner of the Center of Strategic Initiatives (KAZAKHSTAN))

Abstract

This paper examines the relationship between the investment attractiveness of the oil companies and the various indicators of their financial and economic performance. The research follows a quantitative approach covering 22 large oil companies from 12 countries in 2004-2013. The results of the study shows that when investors make decisions about investments in oil companies, such factors as the change in operating expenses per one barrel, level of sales per employee, and the presence of sufficient reserves, but not the current financial performance of oil companies, play a decisive role. This is due to the specific features of the oil industry, such as the long-term and risky nature of investments, and the great importance of oil deposits.

Suggested Citation

  • Nurlan, NURSEIIT & Darmen, SADVAKASOV, 2019. "Attractiveness of Large Oil Companies for External Investors in 2004-2013," Journal of Economic and Social Development, Clinical Journals Press, vol. 6(01), pages 01-12, March.
    • Handle: RePEc:ris:joeasd:0093
    as

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    References listed on IDEAS

    as
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    5. Burton G. Malkiel, 2003. "The Efficient Market Hypothesis and Its Critics," Working Papers 111, Princeton University, Department of Economics, Center for Economic Policy Studies..
    6. repec:pri:cepsud:91malkiel is not listed on IDEAS
    7. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Oil & Gas industry; Firm Performance; Oil Companies; Crude Oil;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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