Work

Energy Security Risk and Firm Valuation: Does Political Connectivity Matter?

Year: 2024

Type: article

Abstract: Employing panel regression models on a sample of U.S. energy firms, we document novel evidence suggesting that energy security risk significantly influences firms’ market valuation, albeit this effect is attributed largely to small- and medium-sized firms. It is also apparent that political connection mitigates the value erosion of firms with larger political capital. Our findings, therefore, validate the interceding role that political connectivity plays in corporate financial performance during periods of volatile energy markets.

Source: Energy RESEARCH LETTERS

DOI: 10.46557/001c.124849

Authors: Ahmed W. Alam, Haijie Xu, Haoran Wu

Institution: Kean University

Language: English

Topic: Political Influence and Corporate Strategies

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Affordable and clean energy, Peace, justice, and strong institutions

Open Access status: diamond

OpenAlex ID: W4404810606