The importance of managerial ability on crude oil price uncertainty-firm performance relationship

Dinh Phan (), Vuong Thao Tran, Dat Nguyen and Anh Le

Energy Economics, 2020, vol. 88, issue C

Abstract: This paper investigates the effect of crude oil price uncertainty on firm performance and how the managerial ability impacts on this relationship. Using a large sample of 13,610 U.S firms from 1983 to 2016, we reveal two main findings. Consistent with our hypothesis, we find strong evidence for a negative effect of crude oil price uncertainty on firm performance at both aggregate market and sectoral levels. However, managerial ability helps firms dampen a significant proportion (approximately 20%–50%) of the negative effect. These findings are consistent in several robustness tests.

Keywords: Crude oil price uncertainty; Firm performance; Managerial ability; Economic significance (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:88:y:2020:i:c:s0140988320301183

DOI: 10.1016/j.eneco.2020.104778

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