- 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
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