 Oil price returns and firm's fixed investment: A production patternLibo Yin and Sen Yang Energy Economics, 2023, vol. 125, issue C Abstract: This paper aims to enlarge the acquaintance with the influence of oil price returns on fixed investment of all Chinese non-financial listed companies. According to our empirical results, oil price returns have a statistically and economically significant and negative predictive power for firm's fixed investment. Other main findings can be summarized as follows: (i) this oil return effect is robust and consistent even considering oil shocks and its different sources; (ii) the heterogeneities of this effect across industries and industrial layers present a “production pattern”; (iii) a composite cost and the financing constraints theory reveal the heterogeneities across firms with varying financial constraints, investment irreversibility, and industry competition; (iv) a combination of changes in demand stimulation and cost pressures contributes to the asymmetric impacts of oil price returns, which vary throughout the oil prices distribution. Keywords: Oil price returns; Fixed investment; Oil shocks; Heterogeneity; Asymmetric effect (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:125:y:2023:i:c:s0140988323003948 DOI: 10.1016/j.eneco.2023.106896 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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