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Impacts of coal prices on the performance of Chinese financial institutions: Does electricity consumption matter?

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  • Lin, Boqiang
  • Wang, Chonghao

Abstract

This paper investigates the impacts of coal prices on Chinese financial institutions' performance through the CAMEL indicators. We also analyze the potential impact mechanism of coal price shocks. Considering the energy consumption structure in China, we further discuss the impacts of electricity price control on coal price shocks. Results show that the coal price shocks have adverse impacts on Chinese financial institutions. And different industries play different roles in the transmission process of coal price shocks. Coal price shocks are partly mitigated by electricity price control, but these interventions in the market are inefficient.

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  • Lin, Boqiang & Wang, Chonghao, 2021. "Impacts of coal prices on the performance of Chinese financial institutions: Does electricity consumption matter?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 884-896.
    • Handle: RePEc:eee:reveco:v:76:y:2021:i:c:p:884-896
    DOI: 10.1016/j.iref.2021.08.008
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    More about this item

    Keywords

    Coal price shock; Camel rating; Financial institution; Electricity price;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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