Oil price volatility and corporate debt choice: Evidence from China

IF 4.5 4区 经济学 Q1 BUSINESS, FINANCE
Yan Jiang , Tian Gan , Xiaokun Wei , Honghui Zou
{"title":"Oil price volatility and corporate debt choice: Evidence from China","authors":"Yan Jiang ,&nbsp;Tian Gan ,&nbsp;Xiaokun Wei ,&nbsp;Honghui Zou","doi":"10.1016/j.jcomm.2025.100517","DOIUrl":null,"url":null,"abstract":"<div><div>Crude oil is considered a vital energy source that significantly shapes firms' production, operation, investment and financing activities. This paper examines the association between oil price volatility (OPV) and corporate debt choice. Using a sample of Chinese listed firms from 2008 to 2022, we find that OPV can increase (decrease) reliance on bank debt (bond financing). This finding is consistent after conducting various robustness checks. Besides, this effect is greater for energy-related industries, less competitive industries, or non-stated-owned firms. Moreover, we find that this effect stems from increased information asymmetry and escalated financial distress risks. Finally, OPV arising from positive price fluctuations has a greater impact on debt choice than negative price changes. This study enhances the understanding of OPV's economic implications, emphasizing the need for policymakers to consider the macroeconomic context when evaluating firms' debt strategies.</div></div>","PeriodicalId":45111,"journal":{"name":"Journal of Commodity Markets","volume":"40 ","pages":"Article 100517"},"PeriodicalIF":4.5000,"publicationDate":"2025-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Commodity Markets","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2405851325000613","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0

Abstract

Crude oil is considered a vital energy source that significantly shapes firms' production, operation, investment and financing activities. This paper examines the association between oil price volatility (OPV) and corporate debt choice. Using a sample of Chinese listed firms from 2008 to 2022, we find that OPV can increase (decrease) reliance on bank debt (bond financing). This finding is consistent after conducting various robustness checks. Besides, this effect is greater for energy-related industries, less competitive industries, or non-stated-owned firms. Moreover, we find that this effect stems from increased information asymmetry and escalated financial distress risks. Finally, OPV arising from positive price fluctuations has a greater impact on debt choice than negative price changes. This study enhances the understanding of OPV's economic implications, emphasizing the need for policymakers to consider the macroeconomic context when evaluating firms' debt strategies.
油价波动与企业债务选择:来自中国的证据
原油被认为是一种重要的能源,对企业的生产、经营、投资和融资活动有着重要的影响。本文考察了石油价格波动与企业债务选择之间的关系。以2008 - 2022年的中国上市公司为样本,我们发现OPV会增加(减少)对银行债务(债券融资)的依赖。在进行各种稳健性检查后,这一发现是一致的。此外,对能源相关行业、竞争力较弱行业和非国有企业的影响更大。此外,我们发现这种效应源于信息不对称的增加和财务困境风险的升级。最后,价格正波动产生的OPV比价格负变化对债务选择的影响更大。本研究加强了对OPV经济影响的理解,强调决策者在评估企业债务战略时需要考虑宏观经济背景。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
5.70
自引率
2.40%
发文量
53
期刊介绍: The purpose of the journal is also to stimulate international dialog among academics, industry participants, traders, investors, and policymakers with mutual interests in commodity markets. The mandate for the journal is to present ongoing work within commodity economics and finance. Topics can be related to financialization of commodity markets; pricing, hedging, and risk analysis of commodity derivatives; risk premia in commodity markets; real option analysis for commodity project investment and production; portfolio allocation including commodities; forecasting in commodity markets; corporate finance for commodity-exposed corporations; econometric/statistical analysis of commodity markets; organization of commodity markets; regulation of commodity markets; local and global commodity trading; and commodity supply chains. Commodity markets in this context are energy markets (including renewables), metal markets, mineral markets, agricultural markets, livestock and fish markets, markets for weather derivatives, emission markets, shipping markets, water, and related markets. This interdisciplinary and trans-disciplinary journal will cover all commodity markets and is thus relevant for a broad audience. Commodity markets are not only of academic interest but also highly relevant for many practitioners, including asset managers, industrial managers, investment bankers, risk managers, and also policymakers in governments, central banks, and supranational institutions.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信