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Debt Finance, Inventory Management and Economic Value of Energy Industry in Saudi Arabia: Empirical Investigation

Author

Listed:
  • Khaled Salmen Aljaaidi

    (Department of Accounting, College of Business Administration, Prince Sattam bin Abdulaziz University, Saudia Arabia.)

  • Omar Ali Bagais

    (Department of Accounting, College of Business Administration, Prince Sattam bin Abdulaziz University, Saudia Arabia.)

Abstract

The purpose of this paper is to identify the relationships of debt finance and inventory management with firm economic value of energy industry in Saudi Arabia, from 2012 to 2019. The sample comprises of 32 firm-year observations throughout the eight years time frame until 2019. Pearson s correlation, Pooled OLS Regression are used in this study. The findings of this study indicate to a negative association between debt finance and firm economic value. Furthermore, a positive association is reported between inventory management and firm economic value. The results of this study are important for energy industry in Saudi Arabia in making decisions related to debt financing. In addition, energy industry can use the results of this study in controlling their inventory practices. Further, the results of this study can be used in future research to gain a deeper understanding of the issues of debt finance, inventory management and firm economic value.

Suggested Citation

  • Khaled Salmen Aljaaidi & Omar Ali Bagais, 2020. "Debt Finance, Inventory Management and Economic Value of Energy Industry in Saudi Arabia: Empirical Investigation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 347-353.
    • Handle: RePEc:eco:journ2:2020-06-45
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    Citations

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    Cited by:

    1. Anis Ali & Abdul Rahman Shaik, 2022. "Effect of Debt Financing on Firm Performance: A Study on Energy Sector of Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 10-15, November.

    More about this item

    Keywords

    Debt finance; inventory management; economic value; energy industry; Saudi Arabia.;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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