IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-32296-0_8.html
   My bibliography  Save this book chapter

The Financing Decision of Oil and Gas Companies: The Role of Country Level Shareholder Protection

In: Regulations in the Energy Industry

Author

Listed:
  • Halit Gonenc

    (University of Groningen, Faculty of Economics and Business)

  • Oleksandr Lebediev

    (University of Groningen, Faculty of Economics and Business)

  • Wim Westerman

    (University of Groningen, Faculty of Economics and Business)

Abstract

This chapter investigates the financing decisions of oil and gas companies in various countries for the period from 2001 to 2015. We focus on the determinants of proportions of both internal (cash flows) and external (debt and equity) funds used in the financing of capital expenditures and aim to understand which theories explain the financing decisions of oil and gas companies. The results provide strong support to the dynamic trade-off theory and partial support to the pecking order and market timing theories. The choice of financing source depends on the shareholder protection at the country level. Companies in countries with a high level of shareholder protection are willing to issue more equity than companies in countries with a low level of shareholder protection.

Suggested Citation

  • Halit Gonenc & Oleksandr Lebediev & Wim Westerman, 2020. "The Financing Decision of Oil and Gas Companies: The Role of Country Level Shareholder Protection," Springer Books, in: André Dorsman & Özgür Arslan-Ayaydin & James Thewissen (ed.), Regulations in the Energy Industry, pages 125-145, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-32296-0_8
    DOI: 10.1007/978-3-030-32296-0_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-32296-0_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.