Does geopolitical risk uncertainty strengthen or depress cash holdings of oil enterprises? Evidence from China

Title: Does geopolitical risk uncertainty strengthen or depress cash holdings of oil enterprises? Evidence from China
Creator: Wang, Kai-Hua; Xiong, De-Ping; Mirza, Nawazish; Shao, Xue-Feng; Yue, Xiao-Guang
Relation: Pacific Basin Finance Journal Vol. 66, Issue April 2021, no. 101516
Publisher Link: http://dx.doi.org/10.1016/j.pacfin.2021.101516
Publisher: Elsevier BV
Resource Type: journal article
Date: 2021
Description: This paper investigates the heterogeneous effects of geopolitical risk (GPR) on enterprise cash holdings (CASH) in Chinese oil sectors. The empirical results are shown as follows: First, enterprises in oil exploration and exploitation sector and oil equipment sector tend to reserve more cash to confront high geopolitical risk. Second, the levels of CASH in oil refinery and sale sector enterprises are negatively related to GPR. Third, there is no significant causal link between GPR and CASH in oil storage and transportation sector. Therefore, oil enterprises should factor in geopolitical risks in differentiated cash management policies based on their sectors' character.
Subject: cash holdings; geopolitical risk; unbalanced panel method
Identifier: http://hdl.handle.net/1959.13/1462105
Identifier: uon:46381
Identifier: ISSN:0927-538X
Language: eng
Reviewed

		Thumbnail	File	Description	Size	Format