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Commodity market exposure to energy-firm distress: Evidence from the Colonial Pipeline ransomware attack

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  • Goodell, John W.
  • Corbet, Shaen

Abstract

The engendering of systemic risk through contagion from stressed firms continues to be of great scholarly interest. While the contribution to systemic risk of enforcement actions against firms in the financial industry, for instance, has received much recent attention, the systemic risk to economies of attacks to firms in energy industries has been much less examined. We assess the impact of the recent Colonial Pipeline ransomware attack on energy commodity prices, evidencing considerable price reactions and destabilising volatility. Results highlight a need for policymakers to conceptualise ‘systemically important energy companies’.

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  • Goodell, John W. & Corbet, Shaen, 2023. "Commodity market exposure to energy-firm distress: Evidence from the Colonial Pipeline ransomware attack," Finance Research Letters, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:finlet:v:51:y:2023:i:c:s1544612322005086
    DOI: 10.1016/j.frl.2022.103329
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    References listed on IDEAS

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    Cited by:

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    4. Iuga, Iulia Cristina & Mudakkar, Syeda Rabab & Dragolea, Larisa Loredana, 2024. "Agricultural commodities market reaction to COVID-19," Research in International Business and Finance, Elsevier, vol. 69(C).
    5. Palma, Alessia & Paltrinieri, Andrea & Goodell, John W. & Oriani, Marco Ercole, 2024. "The black box of natural gas market: Past, present, and future," International Review of Financial Analysis, Elsevier, vol. 94(C).
    6. Ding, Shusheng & Wang, Anqi & Cui, Tianxiang & Du, Anna Min & Zhou, Xinmiao, 2024. "Commodity market stability and sustainable development: The effect of public health policies," Research in International Business and Finance, Elsevier, vol. 70(PB).
    7. Akyildirim, Erdinc & Conlon, Thomas & Corbet, Shaen & Goodell, John W., 2023. "Understanding the FTX exchange collapse: A dynamic connectedness approach," Finance Research Letters, Elsevier, vol. 53(C).
    8. Hu, Yang & Lang, Chunlin & Corbet, Shaen & Hou, Yang (Greg) & Oxley, Les, 2023. "Exploring the dynamic behaviour of commodity market tail risk connectedness during the negative WTI pricing event," Energy Economics, Elsevier, vol. 125(C).
    9. Hu, Yang & Lang, Chunlin & Corbet, Shaen & Wang, Junchuan, 2024. "The impact of COVID-19 on the volatility connectedness of the Chinese tourism sector," Research in International Business and Finance, Elsevier, vol. 68(C).
    10. Azmi, Wajahat & Anwer, Zaheer & Azmi, Shujaat Naeem & Nobanee, Haitham, 2023. "How did major global asset classes respond to Silicon Valley Bank failure?," Finance Research Letters, Elsevier, vol. 56(C).
    11. Li, Yueshan & Chen, Shoudong & Goodell, John W. & Yue, Dianmin & Liu, Xutang, 2023. "Sectoral spillovers and systemic risks: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).
    12. Yousaf, Imran & Riaz, Yasir & Goodell, John W, 2023. "What do responses of financial markets to the collapse of FTX say about investor interest in cryptocurrencies? Event-study evidence," Finance Research Letters, Elsevier, vol. 53(C).

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