Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock Exchange
During the last decade, the international price of crude oil has experienced frequent periods of volatility; which has motivated researchers to investigate how oil price uncertainty affects economic activities and financial markets. Reasonably, oil, as a direct or indirect input factor, can strongly...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2023-03-01
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| Series: | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
| Subjects: | |
| Online Access: | https://jiee.atu.ac.ir/article_15773_b973aa8dc622e312a1f3f4bfedba485d.pdf |
| _version_ | 1797369189830230016 |
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| author | Sima Arabani masomeh Latifi Benmaran |
| author_facet | Sima Arabani masomeh Latifi Benmaran |
| author_sort | Sima Arabani |
| collection | DOAJ |
| description | During the last decade, the international price of crude oil has experienced frequent periods of volatility; which has motivated researchers to investigate how oil price uncertainty affects economic activities and financial markets. Reasonably, oil, as a direct or indirect input factor, can strongly affect the cost of production and profitability expectations of companies. Accordingly, oil price changes can change the company's decision-making and performance. In this regard, we have investigated in the present research the impact of crude oil price volatility on the leverage criteria of companies admitted to the Tehran Stock Exchange. For this purpose, we have used the data of 160 selected companies during the period of 2011 to 2019. We used the panel data method in order to analyze the collected data. The findings of the research showed that crude oil price volatility had negative and significant effects on the leverage criteria of listed companies. Therefore, we concluded that companies reduce their demand for financing to overcome the uncertainty of oil prices. Consequently, an increase in uncertainty in oil prices can motivate companies to reduce their demand for external financing and thus reduce their leverage. |
| first_indexed | 2024-03-08T17:43:05Z |
| format | Article |
| id | doaj.art-b74a82849614483cba0640bc9845b023 |
| institution | Directory Open Access Journal |
| issn | 2423-5954 2476-6437 |
| language | fas |
| last_indexed | 2024-03-08T17:43:05Z |
| publishDate | 2023-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān |
| spelling | doaj.art-b74a82849614483cba0640bc9845b0232024-01-02T10:50:18ZfasAllameh Tabataba'i University PressPizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān2423-59542476-64372023-03-01124613115010.22054/jiee.2023.70624.195815773Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock ExchangeSima Arabani0masomeh Latifi Benmaran1Master of Financial Management, South Tehran Branch, Islamic Azad University, Tehran, IranAssistant Professor, Department of Financial Management, South Tehran Branch, Islamic Azad University, Tehran, IranDuring the last decade, the international price of crude oil has experienced frequent periods of volatility; which has motivated researchers to investigate how oil price uncertainty affects economic activities and financial markets. Reasonably, oil, as a direct or indirect input factor, can strongly affect the cost of production and profitability expectations of companies. Accordingly, oil price changes can change the company's decision-making and performance. In this regard, we have investigated in the present research the impact of crude oil price volatility on the leverage criteria of companies admitted to the Tehran Stock Exchange. For this purpose, we have used the data of 160 selected companies during the period of 2011 to 2019. We used the panel data method in order to analyze the collected data. The findings of the research showed that crude oil price volatility had negative and significant effects on the leverage criteria of listed companies. Therefore, we concluded that companies reduce their demand for financing to overcome the uncertainty of oil prices. Consequently, an increase in uncertainty in oil prices can motivate companies to reduce their demand for external financing and thus reduce their leverage.https://jiee.atu.ac.ir/article_15773_b973aa8dc622e312a1f3f4bfedba485d.pdfcrude oil price volatilitiesfinancial leveragerisk |
| spellingShingle | Sima Arabani masomeh Latifi Benmaran Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock Exchange Pizhūhishnāmah-i Iqtiṣād-i Inirzhī-i Īrān crude oil price volatilities financial leverage risk |
| title | Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock Exchange |
| title_full | Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock Exchange |
| title_fullStr | Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock Exchange |
| title_full_unstemmed | Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock Exchange |
| title_short | Effect of Crude Oil Price Volatilities on the Leverage Requirements of Companies Listed on the Stock Exchange |
| title_sort | effect of crude oil price volatilities on the leverage requirements of companies listed on the stock exchange |
| topic | crude oil price volatilities financial leverage risk |
| url | https://jiee.atu.ac.ir/article_15773_b973aa8dc622e312a1f3f4bfedba485d.pdf |
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