An Analysis of the Impact of Company Assets on Market Value: A Study of Conoil Plc in the Oil and Gas Sector

Abstract

Understanding the effective utilization of a company's assets to enhance market value is pivotal in today's competitive business environment. This study critically analyzes the impact of company assets on the market value of oil and gas firms, with a specific focus on Conoil Plc. The objectives of the research were to examine the influence of current assets on share price, assess the effect of non-current assets on share price, and evaluate the effect of intangible assets on share price in the oil and gas firms. Employing an ex-post facto research design, the study analyzed secondary data from Conoil Plc over a ten-year period (2014-2023). Advanced analytical tools, including trend analysis, SWOT analysis, and multiple regression using e-views software was utilized to derive robust insights. The findings revealed while current assets and non-current assets have no significant effect on share price, intangible assets have significant effect on the share price of Conoil Plc with their p-values 0.87, 0.70 and 0.01respectively. The study concludes that the current, non-current, and intangible assets of the corporation generally have an impact on the share price since pvalue of 0.02˂ 0.05 level of significance. These results challenge conventional assumptions, shedding light on the nuanced relationship between asset management and market valuation in the oil and gas sector. The study recommends that Conoil Plc and other oil and gas firms should optimize asset utilization by enhancing working capital efficiency, ensuring long-term investments yield shareholder value, leveraging intangible assets like branding and innovation, and adopting a holistic asset management approach focused on profitability and market growth.