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The International Gas and Crude Oil Price Variability Effect on Indonesian Coal Mining Companies Listed at IDX

Author

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  • Tri Wahyu Adi

    (Institute of Technology PLN, Jakarta, Indonesia.)

Abstract

This study investigates the influence of gas price, crude oil price and international coal demand on coal sales volume, coal selling price, coal sales revenue, financial performance, business risk and stock price Indonesia coal mining is listed on Indonesia Stock Exchange (IDX). The sample is Indonesia coal mining companies listed on IDX in the period 2014 2018. This study employs a structural equation model using GeSCA software to examine the relationship and effect between research variables. The empirical result shows that Crude Oil Price has a significant positive effect on Gas Price and International Coal Demand, bidirectionally. Gas Price has a significant negative effect on International Coal Demand, bidirectionally. International Coal Demand has no significant positive effect on Coal Selling Price and Sales Volume. Coal Selling Price has not a significant positive effect on Sales Volume. Production Cost has a significant positive effect on Coal Selling Price. Coal Selling Price and Sales Volume have a significant positive effect on Sales Revenue. Coal Sales Revenue has a significant negative effect on Enterprise Risk. The originality of this study investigates a relationship between International Coal Demand, Coal Selling Price and Coal Sales Volume which has never been done in previous research.

Suggested Citation

  • Tri Wahyu Adi, 2022. "The International Gas and Crude Oil Price Variability Effect on Indonesian Coal Mining Companies Listed at IDX," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 1-10, September.
    • Handle: RePEc:eco:journ2:2022-05-1
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    Cited by:

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    More about this item

    Keywords

    Oil Price; Gas Price; Coal Price; Coal Sales; Enterprise Risk; Stock Price; Financial Performance;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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