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Institutional investors' ownership in the oil and gas industry: evidence from network analysis

Author

Listed:
  • João Victor Machado

    (University of Campinas (UNICAMP))

  • Fernando Sarti

    (University of Campinas (UNICAMP))

  • Rodrigo Lanna Franco Silveira

    (University of Campinas (UNICAMP))

  • Camila Veneo Campos Fonseca

    (University of Campinas (UNICAMP))

Abstract

This study investigates the presence of institutional investors in the ownership structure of oil and gas (O&G) corporations during the 2010s. By analyzing a sample of the 50 largest O&G companies, we use a two-mode network methodology to explore the dynamics of investor participation. The results show an increase in institutional investors' ownership share, rising from 23% to 29% over the decade. Furthermore, institutional investors exhibit high centrality within the ownership network, emphasizing their strategic importance. In addition, a substantial portion of investments is concentrated among major money managers, particularly those associated with U.S. companies. This work contributes to understanding the strategic role of institutional investors regarding carbon-intensive assets in a period characterized by changes in the energy paradigm.

Suggested Citation

  • João Victor Machado & Fernando Sarti & Rodrigo Lanna Franco Silveira & Camila Veneo Campos Fonseca, 2024. "Institutional investors' ownership in the oil and gas industry: evidence from network analysis," Economics Bulletin, AccessEcon, vol. 44(3), pages 847-864.
    • Handle: RePEc:ebl:ecbull:eb-23-00442
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    oil and gas industry; institutional investors; ownership; networks.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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