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Corporate commodity exposure: A multi-country longitudinal study

Author

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  • Han, Xu
  • Laing, Elaine
  • Lucey, Brian M.
  • Vigne, Samuel

Abstract

This paper conducts a large-scale multi-country longitudinal study and examines the extent that firms are exposed to commodity price risk in 23 OECD countries. An industry analysis reveals that all industries are significantly exposed to commodity price movements ranging between 8 and 10% except for the energy sector where 38% of firms being significantly exposed. Investigating the determinants of commodity price exposure, we report that firm size is negatively associated with commodity exposure, while the fraction of R&D expenses, leverage, country GDP, and sophistication of the financial derivatives markets are positively related to commodity price exposure.

Suggested Citation

  • Han, Xu & Laing, Elaine & Lucey, Brian M. & Vigne, Samuel, 2023. "Corporate commodity exposure: A multi-country longitudinal study," Journal of Commodity Markets, Elsevier, vol. 30(C).
    • Handle: RePEc:eee:jocoma:v:30:y:2023:i:c:s2405851323000193
    DOI: 10.1016/j.jcomm.2023.100329
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    More about this item

    Keywords

    Commodity price exposure; OECD; Risk management;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

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