Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach

The Oil & Gas sector has played a crucial role in Malaysia’s economy in which 20% is contributed to the nation’s gross domestic product (GDP). Hence, when the global oil price crisis begun in mid 2014, Malaysia’s economy suffered a setback in terms of lower revenue being generated for the countr...

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Main Author:	Narresh, Veerasingam
Format:	Thesis
Language:	eng eng
Published:	2016
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/7571/1/s818114_01.pdf https://etd.uum.edu.my/7571/2/s818114_02.pdf
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id	my-uum-etd.7571
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Mohd Harif, Mohd Amy Azhar
topic	HG Finance
spellingShingle	HG Finance Narresh, Veerasingam Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach
description	The Oil & Gas sector has played a crucial role in Malaysia’s economy in which 20% is contributed to the nation’s gross domestic product (GDP). Hence, when the global oil price crisis begun in mid 2014, Malaysia’s economy suffered a setback in terms of lower revenue being generated for the country and loss of investor confidence causing the FTSE Bursa Malaysia KLCI to fall as well. Therefore, with this in mind this paper examined a number of financial instruments with the aim of identifying the suitability of these instruments in evaluating business entity financial valuation of Oil & Gas companies before and after the oil price crisis. The literature review of this research presented five (5) financial instruments which are price to earnings (PE), enterprise multiplier (EM), discounted cash flow (DCF), net assets value (NAV) and net tangible assets (NTA) that can be used for business entity financial valuation of Malaysia Oil & Gas companies. Therefore, in order to confirm the literature findings, this study was conducted using a case study approach with the objective of contributing to the body of knowledge of the Oil & Gas industry both globally and locally. As a result of the findings, the study finds that the all five (5) financial instruments as mentioned above can be used before crisis periods but only four (4) financial instruments with the exclusion of the discounted cash flow (DCF) approach can be used after or during crisis periods. The exclusion of the discounted cash flow (DCF) valuation methodology is due to its inability to accurately produce consistent business entity financial valuations during times of crisis. In conclusion this research provides a conceptual framework which can be used as a guideline for business entity financial valuation of Malaysia Oil & Gas companies.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Narresh, Veerasingam
author_facet	Narresh, Veerasingam
author_sort	Narresh, Veerasingam
title	Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach
title_short	Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach
title_full	Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach
title_fullStr	Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach
title_full_unstemmed	Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach
title_sort	business entity financial valuation for malaysia oil & gas industry: a qualitative case study approach
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2016
url	https://etd.uum.edu.my/7571/1/s818114_01.pdf https://etd.uum.edu.my/7571/2/s818114_02.pdf
_version_	1747828236596805632
spelling	my-uum-etd.75712021-04-18T06:53:23Z Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach 2016 Narresh, Veerasingam Mohd Harif, Mohd Amy Azhar Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance The Oil & Gas sector has played a crucial role in Malaysia’s economy in which 20% is contributed to the nation’s gross domestic product (GDP). Hence, when the global oil price crisis begun in mid 2014, Malaysia’s economy suffered a setback in terms of lower revenue being generated for the country and loss of investor confidence causing the FTSE Bursa Malaysia KLCI to fall as well. Therefore, with this in mind this paper examined a number of financial instruments with the aim of identifying the suitability of these instruments in evaluating business entity financial valuation of Oil & Gas companies before and after the oil price crisis. The literature review of this research presented five (5) financial instruments which are price to earnings (PE), enterprise multiplier (EM), discounted cash flow (DCF), net assets value (NAV) and net tangible assets (NTA) that can be used for business entity financial valuation of Malaysia Oil & Gas companies. Therefore, in order to confirm the literature findings, this study was conducted using a case study approach with the objective of contributing to the body of knowledge of the Oil & Gas industry both globally and locally. As a result of the findings, the study finds that the all five (5) financial instruments as mentioned above can be used before crisis periods but only four (4) financial instruments with the exclusion of the discounted cash flow (DCF) approach can be used after or during crisis periods. The exclusion of the discounted cash flow (DCF) valuation methodology is due to its inability to accurately produce consistent business entity financial valuations during times of crisis. In conclusion this research provides a conceptual framework which can be used as a guideline for business entity financial valuation of Malaysia Oil & Gas companies. 2016 Thesis https://etd.uum.edu.my/7571/ https://etd.uum.edu.my/7571/1/s818114_01.pdf text eng public https://etd.uum.edu.my/7571/2/s818114_02.pdf text eng public masters masters Universiti Utara Malaysia Antill, N. & Amotl, R. (2000). Valuing Oil and Gas companies. Cambridge, UK: Woodhead Publishing Ltd. Asiedu, E. (2013). Foreign Direct Investment, Natural Resources and Institutions. Kansas: International Growth Centre. Bafes, J., M. A. Kose, F. Ohnsorge, and M. Stocker (2015). The Great Plunge in Oil Prices: Causes, Consequences, and Policy Responses. World Bank Policy Research Note PRS/15/01. Barlow, C. (2001). 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Business entity financial valuation for Malaysia oil & gas industry: A qualitative case study approach

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