EconPapers    
Economics at your fingertips  
 

Oil price shocks and the financial performance patterns of logistics service providers

Erik Hofmann, Tomi Solakivi, Juuso Töyli and Martin Zinn

Energy Economics, 2018, vol. 72, issue C, 290-306

Abstract: This paper examines the influence of oil price shocks on the financial performance of logistics service providers. By applying the structural vector auto regression (SVAR) methodology to the data of 301 logistics service providers (LSPs) from 2004 to 2014, based on annual and half-yearly report data (in total 6020 firm-years), it is shown that oil price changes are absorbed in a variety of ways by different types of companies. Fluctuations in oil prices negatively affect the transportation industry – with minor restrictions in asset-light clusters and companies which consume little to no oil. Our analysis also shows that oil price shocks result in effects of different magnitude and length with respect to the type of LSP. Thus, some LSP clusters adapt quicker to oil price changes than others and are better able to absorb price shocks. An innovative approach is applied to examine LSP performance; SVAR, a widespread model in economics, is used to analyse the LSP sector. The results are important for financial planning of the management of different LSP types as well as their customers.

Keywords: Macroeconomic shocks; Oil price development; Structural vector auto regression; Logistics service providers; Clusters (search for similar items in EconPapers)
JEL-codes: G17 L11 L21 L87 L91 Q4 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988318301300
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:72:y:2018:i:c:p:290-306

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
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-08-04
Handle: RePEc:eee:eneeco:v:72:y:2018:i:c:p:290-306