We investigate the impact of oilfield control on firm value (measured as Tobin's q). The valuation effect of control over associated and subsidiary entity assets is well formulated. Less clear is the value of control when the contracting nexus is the asset itself. In this study of strategic oil...

We provide evidence that international diversification in the oil and gas sector comes at an important cost; lower control over foreign oilfield assets (and therefore reduced control over oilfield cash-flows). This work examines the factors that drive companies to diversify despite the loss of...

Our paper uses an extensive sample of 292 oilfields to provide evidence that Securities and Exchange Commission (SEC) supplementary disclosures do not capture the price sensitivities of Oamp;G disclosures implicit in the two main forms of oilfield ownership, concession and production sharing...

It has become fashionable to blame global banking failures on the unfettered growth in 'hard to value and hard to sell' level 3 banking assets. With the majority of large UK and many US banks collapsing or forced to raise capital over the 2007-9 period, blaming bankers may be satisfying but is...

Economic capital models are potentially powerful tools for enterprise risk management (ERM), and for the supervisory review process (Pillar 2) of the Basel II and Solvency II regulatory capital frameworks. We argue that, to fulfill this potential, economic capital models need to be fully...

Commodity price shocks are shown to cause shifts in both the quantum and timing of risk in natural resource assets. We provide evidence that static risk measures understate the periodicity of price risk implicit in depleting assets. Risk measurement is demonstrated to be asset specific and to...

This study allows insights into the effects of economic state variables on asset values. We use a global sample of oil and gas sector assets to demonstrate that global differences in state participation terms cause oilfield asset values to respond differently to oil price shocks. Our sample...

This study provides market evidence of the effects of economic state variables on sector stock returns and risk premia. Corporate values in the oil and gas sector are underpinned by state reserve participation terms that directly affect corporate cash flow entitlement. Progressive sovereign...

We examine the impact of market volatility and increased fiscal take on risk in strategic natural resource projects. An increase in 2006 UK oilfield taxation is used as a natural experiment for assessing the impact of a fiscal increase on oilfield projects comprising 73% of UK reserves....