"Financial Performance Key Value Situation by Crude Oil Price Fluctuation"

Abstract

Crude oil price always plays a major role in International oil companies(IOCs). Shareholders of IOCs are affected directly by crude oil price fluctuation and it's important to know how to appraise effects of crude oil price on quality of earnings which is the adjusted index to evaluate each company's financial situation. Quality of earning is a financial factor, which could support financial performance, so evaluating this factor by crude oil price and appraise correlation between them could clarify business model behavior while the market upraises or downward. The key value which should appraise in IOCs business model is financial performance which has significant dependency with quality of earning (Campbell R. Harvey, 2012). Furthermore, as our data is collected from New York Stock exchange (NYSE) and OTC market stock exchange (OTCMKTS), required data were arranged based on GAAP financial standard. Objectives of this research are Evaluating financial performance as a key value in IOCs by appraising crude oil price effects on quality of earning in NYSE and OTCMKTS stock exchange companies' oil and gas sector. Methodology of this research is using Pearson correlation coefficient and regression to test quantitative data which is derived from stock exchange.