How oil price uncertainty influences corporate capital structure : evidence from BRIC countries

Manh Huu Nguyen, Walid Bakry, Giang Thi Huong Vuong

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1 Citation (Scopus)

Abstract

This paper examines how corporate capital structures in emerging markets" Brazil, Russia, India, and China (BRIC)" were impacted by oil price uncertainty (OPU) from 2007 to 2019. We find that the relationship between OPU and firm leverage in BRIC markets is nonlinear and U-shaped. The extent to which OPU affects both short- and long-term leverage varies across nations. These findings are robust to endogeneity tests. Furthermore, while the OPU effect on corporate leverage is lessened in high-growth enterprises, it is strengthened in materials and energy companies. From an OPU perspective, this paper contributes intriguing knowledge of the corporate finance field.
Original languageEnglish
Number of pages27
JournalMacroeconomics and Finance in Emerging Market Economies
DOIs
Publication statusPublished - 2024

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