Corporate commodity exposure: A multi-country longitudinal study

Xu Han, Elaine Laing, Brian Lucey and Samuel Vigne

Journal of Commodity Markets, 2023, vol. 30, issue C

Abstract: This paper conducts a large-scale multi-country longitudinal study and examines the extent that firms are exposed to commodity price risk in 23 OECD countries. An industry analysis reveals that all industries are significantly exposed to commodity price movements ranging between 8 and 10% except for the energy sector where 38% of firms being significantly exposed. Investigating the determinants of commodity price exposure, we report that firm size is negatively associated with commodity exposure, while the fraction of R&D expenses, leverage, country GDP, and sophistication of the financial derivatives markets are positively related to commodity price exposure.

Keywords: Commodity price exposure; OECD; Risk management (search for similar items in EconPapers)
JEL-codes: F23 G32 Q02 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jocoma:v:30:y:2023:i:c:s2405851323000193

DOI: 10.1016/j.jcomm.2023.100329

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