Evolutionary Features of Correlations in China’s Listed Energy Companies Based on Financial Indicators

Abstract

Listed energy companies play important roles in both energy market and financial market. Relationships between those energy companies also affect both markets. Thus, examining listed energy companies’ relationships is necessary and useful for the further study of the field of energy and finance. To investigate energy companies’ relationships, we applied the Grey Relational Analysis (GRA) and the complex network theory to construct the network. We selected listed energy companies’ ten years’ financial indicators as our input data. We analyzed the network’s evolutionary topological features and explained the implications of these features in detail. We also made panel regression analysis to find out the relationship between network indicators and stock returns. This study provides a new perspective for discovering the relationships of listed energy companies based on financial indicators. It can help government and investors identify the roles of companies in the market so that they can regulate the market in time and make sound investments.