Abstract
This paper aims to enlarge the acquaintance with the influence of oil price returns on fixed investment of all Chinese non-financial listed companies. According to our empirical results, oil price returns have a statistically and economically significant and negative predictive power for firm's fixed investment. Other main findings can be summarized as follows: (i) this oil return effect is robust and consistent even considering oil shocks and its different sources; (ii) the heterogeneities of this effect across industries and industrial layers present a “production pattern”; (iii) a composite cost and the financing constraints theory reveal the heterogeneities across firms with varying financial constraints, investment irreversibility, and industry competition; (iv) a combination of changes in demand stimulation and cost pressures contributes to the asymmetric impacts of oil price returns, which vary throughout the oil prices distribution.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
