Does geopolitical risk uncertainty strengthen or depress cash holdings of oil enterprises? Evidence from China
Nawazish Mirza (),
Xue-Feng Shao and
Xiaoguang Yue ()
Pacific-Basin Finance Journal, 2021, vol. 66, issue C
This paper investigates the heterogeneous effects of geopolitical risk (GPR) on enterprise cash holdings (CASH) in Chinese oil sectors. The empirical results are shown as follows: First, enterprises in oil exploration and exploitation sector and oil equipment sector tend to reserve more cash to confront high geopolitical risk. Second, the levels of CASH in oil refinery and sale sector enterprises are negatively related to GPR. Third, there is no significant causal link between GPR and CASH in oil storage and transportation sector. Therefore, oil enterprises should factor in geopolitical risks in differentiated cash management policies based on their sectors' character.
Keywords: Cash holdings; Geopolitical risk; Unbalanced panel method (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:66:y:2021:i:c:s0927538x21000238
Access Statistics for this article
Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee
More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().