The response of corporate investments in the US to oil price changes: the role of asymmetries

Maghyereh, A. I. and Awartani, B. 2020. The response of corporate investments in the US to oil price changes: the role of asymmetries. Applied Finance Letters. 9, pp. 11-24. https://doi.org/10.24135/afl.v9i0.184

TitleThe response of corporate investments in the US to oil price changes: the role of asymmetries
TypeJournal article
AuthorsMaghyereh, A. I. and Awartani, B.
Abstract

This paper investigates the influence of oil price changes on corporate investment in the US using a large sample of 15,411 companies from 1984 to 2017. It adds to the literature by showing an asymmetric response of capital investments to oil price changes for non-oil companies. Particularly, positive oil price changes have a larger adverse impact on investments than the positive impact created by negative oil price changes. These results are important in assessing the impact of energy price fluctuations on the long-term investment decisions of US companies.

KeywordsOil price
Corporate investment
U.S. firm
Asymmetry
JournalApplied Finance Letters
Journal citation9, pp. 11-24
ISSN2253-5799
Year2020
PublisherTuwhera Open Access Publisher
Publisher's version
License
CC BY-NC-ND 4.0
File Access Level
Open (open metadata and files)
Digital Object Identifier (DOI)https://doi.org/10.24135/afl.v9i0.184
Publication dates
Published12 Feb 2020

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