Petroleum Business Review

Abstract In recent years, the completion of the value chain and increased exportation of petrochemical products have been utilized to offset oil and gas export losses. As a result, this may have created various challenges and complexities within the oil and gas industry. The study aims to identify key challenges confronting Iran's petrochemical industry, with a particular focus on regulatory issues. It seeks to distinguish and prioritize the most critical regulatory factors necessary for establishing an effective regulatory framework in the petrochemical sector. For this study, data was collected through several interviews and questionnaire with Iran's petrochemical experts. With the collected data, the Delphi method was utilized to help identify the most critical challenges. The impact and significance of each challenge were determined through statistical analysis. The research findings indicate that the most important challenges are the weakness of laws to attract foreign and domestic investors, the lack of trust and lack of integration in this industry from upstream to downstream sector, respectively. Also, based on the research results, it show that it is essential for Iran's petrochemical industry to have two regulatory agencies. The "Competition Council" and the "Securities and Exchange High Council" as regulators of the physical and financial markets are considered, however, for them to regulate effectively the overall structure of these councils must first be dramatically reformed. The important effective regulating factors which should be emphasized by the regulator in Iran's petrochemical industry were indicated and ranked as allocation, responsiveness, financial independence, legal independence and political independence.

Abstract It has always been a challenging question for financial analysts, investors and activists in the capital market that what factors affect stock price of companies. Furthermore, how such factors cause stock price fluctuations over time in the capital markets. Therefore, the aim of this research is to determine the effects of key contingent variables such as changes on equity, credit rating and assets price growth on stock prices volatility of petroleum companies listed on Tehran Stock Exchange (TSE). Financial data for the purpose of this study were collected from a sample of 91 companies during a period of eight years from 1392 till 1399 and research hypotheses were tested using the multivariate regression models and ordering panel data with fixed effects tests. Results showed a significant negative relationship between credit rating and stock price volatility. But, there was no significant correlation between changes on equity and stock price volatility. Also, there was not a significant relationship between assets price growth and stock price volatility.

Abstract The purpose of this study is to evaluate the financial performance of provincial gas distribution companies as affiliates for National Iranian Gas Company. To this end, we identified financial performance indicators in accordance with the requirements of NIGC through a review of theoretical foundations and interviews with a number of financial and planning experts and then prioritized using the Analytical Hierarchy Process method. These indicators lied in four groups of liquidity, capital structure, profitability and activity criteria, respectively. Then, the weighted indicators were analyzed using TOPSIS technique in Expert-Choice software and the final ranking of the companies was provided. The results showed that based on the identified criteria, provincial gas companies of Hormozgan, Yazd, Markazi, and Kermanshah had a favorable financial performance and Ilam, Mazandaran, Chaharmahal and Bakhtiari and Zanjan provincial gas companies had a weak financial performance with respect to other companies in three years under review and some suggestions have been made in this regard.

Abstract Recent theories of firm dynamics emphasize on the role of financial variables as determinants of firm growth. Most of the technical literature shows that there is a positive relationship between financial leverage and firm growth. The purpose of this paper is to examine whether such relationship exists among oil and gas companies within the Organization of the Petroleum Exporting Countries (OPEC). Data were collected from the selected members of the OPEC. The collected data was then analyzed using the Arellano and Bond (1991) GMM method and Sargan test. The results showed a significant and positive relationship between financial leverage and firm growth which is in line with the technical literature. This research contributes to the body of knowledge by examining a specific and important sector within several different countries. It shows the current theory is not affected by industry or country.