Economics at your fingertips  

Energy Firms in Emerging Markets: Systemic Risk and Diversification Opportunities

Helena Chuliá (), Jorge A. Muñoz-Mendoza () and Jorge Uribe ()
Additional contact information
Jorge A. Muñoz-Mendoza: Department of Business Management, University of Concepcion, Chile. School of Economics, University of Barcelona, Spain.

No 202216, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: Previous studies in energy stock markets have analyzed market connectedness using aggregate indexes and focusing on developed markets. We depart from the extant literature and we focus our attention on companies listed on emerging stock markets and examine connectedness from the firm’s perspective. Using a two-step approach, we remove the common global factors from energy stock returns and estimate the network of global energy stocks in emerging markets. We show that idiosyncratic components are highly relevant for our understanding of risk transmission in energy markets. Moreover, we offer precise diversification alternatives and identify the most systemically important firms and countries.

Keywords: Energy firms; Spillovers; Connectedness; Network. JEL classification: G15; Q43; Q48. (search for similar items in EconPapers)
Pages: 34 pages
Date: 2022-10, Revised 2022-10
New Economics Papers: this item is included in nep-ene and nep-fmk
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

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:

Access Statistics for this paper

More papers in IREA Working Papers from University of Barcelona, Research Institute of Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by Alicia García ().

Page updated 2023-02-05
Handle: RePEc:ira:wpaper:202216