PROVED OR PROBABLE OIL RESERVES:DOES IT MATTER?AN EMPIRICAL STUDY ON CANADIAN OIL AND GAS COMPANIES

摘要

When Shell first publicly announced (2004) that it had overstated its proved oil and gas reserves by approximately 25%,the share price declined dramatically.Disclosure of a firm's proved and probable oil reserves is a key performance indicator in the oil and gas industry.If proved and probable reserves have a significant influence on share prices,then inappropriate estimation of these natural resources by incumbent managers or a lack of adequate accounting regulation can cause losses to uninformed investors and leave the possibility open for selfish behavior of managers.