EURO-Online login
- New to EURO? Create an account
- I forgot my username and/or my password.
- Help with cookies
(important for IE8 users)
3603. Do Oil Market Shocks Affect Financial Distress? Evidence from Firm-level Global Data
Invited abstract in session TA-14: Enhanced statistical methods for energy challenges, stream Energy Markets.
Tuesday, 8:30-10:00Room: 16 (building: 116)
Authors (first author is the speaker)
| 1. | Mohammad Mahdi Mousavi
|
| School of Management, University of Bradford |
Abstract
This paper investigates the impact of three oil price shocks, i.e. oil supply shock, oil aggregate and specific demand shocks, on firm-level distress using a dataset including 8,130 firms across 48 countries from 2002 to 2022. The study also analyzes the role of energy diversification in the relationship between oil-specific demand shock and firm distress. The paper finds that aggregated demand and specific demand shocks increase firm distress risk while supply shocks reduce such risk. Furthermore, the findings suggest that energy diversification mitigates the impact of specific demand shocks on firm distress. The paper also implements several robustness checks, and the results remain the same. Potential policy implications are also discussed.
Keywords
- Risk Analysis and Management
- Energy Policy and Planning
Status: accepted
Back to the list of papers