Do oil market shocks affect financial distress? Evidence from firm-level global data

Mousavi, M.M., Gozgor, G. and Acheampong, A. ORCID: 0000-0002-9489-5751, 2024. Do oil market shocks affect financial distress? Evidence from firm-level global data. Journal of Commodity Markets, 36: 100436. ISSN 2405-8513

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Abstract

This study investigates the impact of three oil price shocks on financial distress of global firms using a dataset of 8130 firms across 48 countries from 2002 to 2022. It also analyses the role of energy diversification in the relationship between oil shocks and firm distress. The findings reveal that aggregate demand and specific demand shocks increase firm distress risk, while supply shocks reduce it. Furthermore, the results suggest that energy diversification mitigates the impact of specific demand shocks on firm distress. The study also implements several robustness checks, and the results remain consistent. Potential policy implications are also discussed.

Item Type:	Journal article
Publication Title:	Journal of Commodity Markets
Creators:	Mousavi, M.M., Gozgor, G. and Acheampong, A.
Publisher:	Elsevier BV
Date:	December 2024
Volume:	36
ISSN:	2405-8513
Identifiers:	Number Type 10.1016/j.jcomm.2024.100436 DOI S2405851324000552 Publisher Item Identifier 2237628 Other
Rights:	© 2024 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Divisions:	Schools > Nottingham Business School
Record created by:	Melissa Cornwell
Date Added:	04 Oct 2024 08:57
Last Modified:	04 Oct 2024 08:57
URI:	https://irep.ntu.ac.uk/id/eprint/52353

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