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To Grow or not to Grow under Macroeconomic Uncertainty – the case of the European oil industry

Mynde_sköldberg, Lucas; Söderman, Ken and Hellström, Jonas (2009)
Department of Business Administration
Abstract
Purpose To investigate the predicted relation between macroeconomic risk exposure and growth in the context of the European oil industry. Methodology Multiple regression analysis Theoretical Macroeconomic uncertainty, Financial constraints, The hierachy of Perspectives Finance, Fundamentals of hedging Empirical 225 observations have been included to determine a beta coefficient Foundation of -2.83 corresponding to the influence that macroeconomic risk exposure has on firm growth, defined as the alteration in total assets. In combination with the control variable “size”, macroeconomic risk exposure explain approximately 40 percent of the growth rate among oil producing firms in Europe. Conclusions Strong empirical support to the hypothesis... (More)
Purpose To investigate the predicted relation between macroeconomic risk exposure and growth in the context of the European oil industry. Methodology Multiple regression analysis Theoretical Macroeconomic uncertainty, Financial constraints, The hierachy of Perspectives Finance, Fundamentals of hedging Empirical 225 observations have been included to determine a beta coefficient Foundation of -2.83 corresponding to the influence that macroeconomic risk exposure has on firm growth, defined as the alteration in total assets. In combination with the control variable “size”, macroeconomic risk exposure explain approximately 40 percent of the growth rate among oil producing firms in Europe. Conclusions Strong empirical support to the hypothesis regarding the relationship between macroeconomic risk exposure and firm growth is found, where macroeconomic risk exposure has a negative impact on growth within the European oil industry. (Less)
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author
Mynde_sköldberg, Lucas; Söderman, Ken and Hellström, Jonas
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Macroeconomic risk exposure, internal cash flow, growth, oil industry, multiple regression, Management of enterprises, Företagsledning, management
language
Swedish
id
1474468
date added to LUP
2009-06-03 00:00:00
date last changed
2012-04-02 17:49:18
@misc{1474468,
  abstract     = {Purpose	To investigate the predicted relation between macroeconomic risk exposure and growth in the context of the European oil industry. Methodology Multiple regression analysis Theoretical Macroeconomic uncertainty, Financial constraints, The hierachy of Perspectives	Finance, Fundamentals of hedging Empirical 225 observations have been included to determine a beta coefficient Foundation of -2.83 corresponding to the influence that macroeconomic risk exposure has on firm growth, defined as the alteration in total assets. In combination with the control variable “size”, macroeconomic risk exposure explain approximately 40 percent of the growth rate among oil producing firms in Europe. Conclusions Strong empirical support to the hypothesis regarding the relationship between macroeconomic risk exposure and firm growth is found, where macroeconomic risk exposure has a negative impact on growth within the European oil industry.},
  author       = {Mynde_sköldberg, Lucas and Söderman, Ken and Hellström, Jonas},
  keyword      = {Macroeconomic risk exposure,internal cash flow,growth,oil industry,multiple regression,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {To Grow or not to Grow under Macroeconomic Uncertainty – the case of the European oil industry},
  year         = {2009},
}