Do coal price shocks affect the risk-taking of listed companies in China?

Boqiang Lin () and Yijie Song

Resources Policy, 2025, vol. 101, issue C

Abstract: Macroeconomic factors such as coal prices affect corporate decision making. With a set of 39,795 observations of firm-year data, encompassing 30 provinces and spanning the years 2005–2022, this paper estimates the impact of coal price shocks to corporate risk-taking of listed companies in China. The empirical results show that coal prices change negatively affect corporate risk-taking due to internal risk aversion. Further analysis shows that this effect is asymmetric between positive and negative shocks, and is more significant among higher coal dependence provinces. External factors such as economic policy uncertainty further reduce risk-taking. This study provides both macro and micro perspective analysis of corporate risk-taking and coal prices influences, contributing to the policy references for corporate strategic choices and coal price adjustments in the process of energy transition of China.

Keywords: Coal prices; Risk-taking; Coal dependence; Economic policy uncertainty (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420724008250
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:jrpoli:v:101:y:2025:i:c:s0301420724008250

DOI: 10.1016/j.resourpol.2024.105458

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().