International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy

We develop and estimate a dynamic model of investment to investigate the impact of international oil price uncertainty on corporate investment expenditures in China's emerging and transition economy. We further examine whether state ownership affects the relationship between oil price uncertain...

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Main Authors: Wang, Y., Xiang, E., Cheung, Adrian, Ruan, W., Hu, Wei
Format: Journal Article
Published: Elsevier 2017
Online Access:http://hdl.handle.net/20.500.11937/51331
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author Wang, Y.
Xiang, E.
Cheung, Adrian
Ruan, W.
Hu, Wei
author_facet Wang, Y.
Xiang, E.
Cheung, Adrian
Ruan, W.
Hu, Wei
author_sort Wang, Y.
building Curtin Institutional Repository
collection Online Access
description We develop and estimate a dynamic model of investment to investigate the impact of international oil price uncertainty on corporate investment expenditures in China's emerging and transition economy. We further examine whether state ownership affects the relationship between oil price uncertainty and corporate investment. Consistent with the model's prediction, the main finding is that oil price uncertainty exerts a negative impact on corporate investment expenditures. In addition, compared with state-owned listed companies, the negative influence of oil price uncertainty on corporate investment is more significant for non-state-owned listed companies. Our further analysis, using the market-oriented reform of refined oil pricing in 2008 as a quasi-natural event, shows the variation between the low-degree marketization period and the high-degree one in terms of the relationship between international oil price uncertainty, state ownership and corporate investment expenditures.
first_indexed 2025-11-14T09:47:41Z
format Journal Article
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institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T09:47:41Z
publishDate 2017
publisher Elsevier
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spelling curtin-20.500.11937-513312017-09-13T15:42:02Z International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy Wang, Y. Xiang, E. Cheung, Adrian Ruan, W. Hu, Wei We develop and estimate a dynamic model of investment to investigate the impact of international oil price uncertainty on corporate investment expenditures in China's emerging and transition economy. We further examine whether state ownership affects the relationship between oil price uncertainty and corporate investment. Consistent with the model's prediction, the main finding is that oil price uncertainty exerts a negative impact on corporate investment expenditures. In addition, compared with state-owned listed companies, the negative influence of oil price uncertainty on corporate investment is more significant for non-state-owned listed companies. Our further analysis, using the market-oriented reform of refined oil pricing in 2008 as a quasi-natural event, shows the variation between the low-degree marketization period and the high-degree one in terms of the relationship between international oil price uncertainty, state ownership and corporate investment expenditures. 2017 Journal Article http://hdl.handle.net/20.500.11937/51331 10.1016/j.eneco.2016.11.024 Elsevier restricted
spellingShingle Wang, Y.
Xiang, E.
Cheung, Adrian
Ruan, W.
Hu, Wei
International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy
title International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy
title_full International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy
title_fullStr International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy
title_full_unstemmed International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy
title_short International oil price uncertainty and corporate investment: Evidence from China's emerging and transition economy
title_sort international oil price uncertainty and corporate investment: evidence from china's emerging and transition economy
url http://hdl.handle.net/20.500.11937/51331