Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industry
The growth and survival of a company are based on making appropriate and principled investment decisions. This is while a company always continues to operate in an unpredictable environment and under the influence of various shocks. In this regard, this issue has created a two-way relationship betwe...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2021-06-01
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| Series: | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
| Subjects: | |
| Online Access: | https://jiee.atu.ac.ir/article_14194_fa2c214878a850d4cbaafe3638972938.pdf |
| _version_ | 1797369258121887744 |
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| author | jalal Dehnavi Mir Hossein Mousavi Musa Khoshkalam Khosroshahi Lana Eivazy |
| author_facet | jalal Dehnavi Mir Hossein Mousavi Musa Khoshkalam Khosroshahi Lana Eivazy |
| author_sort | jalal Dehnavi |
| collection | DOAJ |
| description | The growth and survival of a company are based on making appropriate and principled investment decisions. This is while a company always continues to operate in an unpredictable environment and under the influence of various shocks. In this regard, this issue has created a two-way relationship between investment and uncertainty. Therefore, this study examines the relationship between investment and uncertainty in the Iranian oil industry during the period 2010 to 2019 for 32 listed companies active in the oil industry. In this regard, using the vector auto-regression approach with generalized auto-regression conditional variance heterogeneity moment, first, the structural shocks of the oil market are extracted, and then using the generalized moments approach of the Tobin q investment model is estimated. Findings show that the shock caused by global demand (εpw), and the shock caused by the global stock market (εsp) have a negative and significant effect on the ratio of gross investment to corporate capital stock. The ratio of gross investment to the company's capital stock has a negative effect on its amount with a one-year delay, which is also statistically significant. Oil supply shock (εopw) and oil price shock (εrp) have a positive and significant effect on the ratio of gross investment to the company's capital stock. The ratio of market value to the replacement value of company assets has a positive and significant effect on the ratio of gross investment to capital stock. In this regard, due to the effectiveness of oil companies’ investments in global variables such as global oil price fluctuations and supply and demand shocks, investors' stock insurance against sudden fluctuations and shocks is recommended. |
| first_indexed | 2024-03-08T17:44:01Z |
| format | Article |
| id | doaj.art-9cd7563a35db465da4e300c3e9837bd4 |
| institution | Directory Open Access Journal |
| issn | 2423-5954 2476-6437 |
| language | fas |
| last_indexed | 2024-03-08T17:44:01Z |
| publishDate | 2021-06-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
| spelling | doaj.art-9cd7563a35db465da4e300c3e9837bd42024-01-02T10:49:32ZfasAllameh Tabataba'i University PressPizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān2423-59542476-64372021-06-01103915918110.22054/jiee.2022.65851.188514194Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industryjalal Dehnavi0Mir Hossein Mousavi1Musa Khoshkalam Khosroshahi2Lana Eivazy3Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, IranDepartment of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, IranایرانDepartment of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, IranMaster of Economics, Alzahra University, Tehran, IranThe growth and survival of a company are based on making appropriate and principled investment decisions. This is while a company always continues to operate in an unpredictable environment and under the influence of various shocks. In this regard, this issue has created a two-way relationship between investment and uncertainty. Therefore, this study examines the relationship between investment and uncertainty in the Iranian oil industry during the period 2010 to 2019 for 32 listed companies active in the oil industry. In this regard, using the vector auto-regression approach with generalized auto-regression conditional variance heterogeneity moment, first, the structural shocks of the oil market are extracted, and then using the generalized moments approach of the Tobin q investment model is estimated. Findings show that the shock caused by global demand (εpw), and the shock caused by the global stock market (εsp) have a negative and significant effect on the ratio of gross investment to corporate capital stock. The ratio of gross investment to the company's capital stock has a negative effect on its amount with a one-year delay, which is also statistically significant. Oil supply shock (εopw) and oil price shock (εrp) have a positive and significant effect on the ratio of gross investment to the company's capital stock. The ratio of market value to the replacement value of company assets has a positive and significant effect on the ratio of gross investment to capital stock. In this regard, due to the effectiveness of oil companies’ investments in global variables such as global oil price fluctuations and supply and demand shocks, investors' stock insurance against sudden fluctuations and shocks is recommended.https://jiee.atu.ac.ir/article_14194_fa2c214878a850d4cbaafe3638972938.pdfoil industryinvestmentuncertainty |
| spellingShingle | jalal Dehnavi Mir Hossein Mousavi Musa Khoshkalam Khosroshahi Lana Eivazy Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industry Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān oil industry investment uncertainty |
| title | Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industry |
| title_full | Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industry |
| title_fullStr | Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industry |
| title_full_unstemmed | Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industry |
| title_short | Investigating the Relationship between Investment and Uncertainty in Iran's Oil Industry |
| title_sort | investigating the relationship between investment and uncertainty in iran s oil industry |
| topic | oil industry investment uncertainty |
| url | https://jiee.atu.ac.ir/article_14194_fa2c214878a850d4cbaafe3638972938.pdf |
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