Factors that explain the results of the national oil companies: The impact of the fiscal role on Pemex's results

The Empirical Linkage between Oil Prices and the Stock Returns of Oil Companies

“…A slightly less significant causality could be found for state-owned companies. The interpretation of this result was in accordance with Gutiérrez et al (2021), who stated that state-owned companies might be less sensitive to market shocks as, when shocks appear on the market, they are better supported by governments and therefore are not so cycle sensitive. As other companies potentially go bankrupt, the state gives additional funds to these companies to protect them, even if this may not be economically effective.…”

“…Most of the selected private companies had bi-causal relationship with oil prices, while state-owned companies were not as affected by falling oil prices. This could be explained by the fact that the state-owned companies are less sensitive during oil drops as they are better supported by the state, which was in line with Gutiérrez et al (2021). Interesting is also the fact that the WTI didn't have an impact on Lukoil during the third subperiod what is dissimilarity with other private companies.…”

“…However, state-owned companies are supported by their states, even if this is not economically efficient. Therefore, these companies' stocks are less affected in periods of oil price downtrends (Gutiérrez et al, 2021). Interesting results could be seen for the private Russian company Lukoil, which may act more like a state-owned company because of the control the Russian government exercises (Ediger et al, 2021).…”

“…It is known that state-owned companies are less flexible because they did not optimise their wells due to oil price volatility and they were not as motivated to innovate as private companies (Hefner, 2014). However, a recent study by Gutiérrez et al (2021) found that state-owned companies are not as sensitive to oil shocks as states do not manage these companies effectively; therefore, even if they suffer from economic problems, governments fund them. This aspect of the dissimilarities between stateowned and private oil mining companies should be analysed in more detail, with a focus on specific oil trends.…”

“…These companies also develop new technologies and cut their costs. However, state-owned companies are less likely to default because they are supported by governments when shocks on the oil market occur (Gutiérrez et al, 2021). These studies have not examined the details of oil price development.…”