Project Materials

AN EVALUATION OF SHARE PRICE DETERMINATION AND CORPORATE FIRM CHARACTERISTICS

Chapter one

INTRODUCTION

Background of the Study

The immediate operation launched by the Niger Delta militia group called Niger Delta Avengers and Youths’ nervousness in the region has affected crude oil exploitation, exploration, and prospecting over the years, but the recent launch operation zero economies carried out by the avengers bombing crude oil pipelines and attacking oil installations became a national challenge as it led to decreases in oil prices and lured Nigeria into economic recession, which then caused Organ

The Nigerian Oil and Gas sector Content Development Act (the “Act”), recently signed into law, is the result of decades of work by the government and petroleum sector stakeholders to guarantee that the industry offers local value and maximum benefits to Nigerians.

Since the discovery of oil in Nigeria more than fifty years ago, the petroleum industry has functioned as a “enclave” economy, contributing little to the national economy.

Previous efforts to implement the local content policy have included the establishment of various research, development, training, education, and support funds; provisions in the Petroleum Act requiring petroleum operators to employ and train Nigerians;

provisions in various contractual arrangements with International Oil Companies (“IOCs”) requiring technology transfer, local content utilisation, recruitment, and training of Nigerian personnel; and (Solabomi & Bab

Chemweno (2017) states that firm characteristics include structure, capital, and market-related structures. Firm age, ownership, and size are all related structures.

These market-associated structures include environmental risks, industry type, and the immediate marketing environment, whereas capital-related structures include liquidity and capital intensity (Alseaed, 2017).

Lawal (2018) defined organisational performance as the firm’s ability to provide acceptable results. There is no commonly agreed definition of organisational success whether it comes to a company’s survival, profit, return on investment, sales growth, personnel count, or reputation.

As a result, it is vital to develop cost-effective strategies to raise standards while simultaneously easing limits on innovation, product refinement, and existing initiatives to strengthen a company’s ability to cut costs and increase overall profitability (Uchida, 2017).