How does economic policy uncertainty (EPU) impact copper-firms stock returns? International evidence

Maquieira, Carlos; Espinosa, Christian; Flores, Orlando Francisco Gahona

doi:10.1016/j.resourpol.2023.103372

Cited by 16 publications

(4 citation statements)

References 34 publications

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“…This is done for a sample of 23 from January 2005 to December 2015. More recently, Maquieira et al . (2023) report a positive and statistically significant relationship between copper stock returns and returns on copper spot prices and copper future prices.…”

Section: Hypotheses and Modelsmentioning

confidence: 99%

“…Using a sample of net exporters of copper main results hold. Maquieira et al . (2023) report the impact that Local and Global EPU have on the copper-firms stock returns and the other four economic sectors considered in this study to test the robustness of the results.…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

“…This is done for a sample of 23 from January 2005 to December 2015. More recently, Maquieira et al (2023) report a positive and statistically significant relationship between copper stock returns and returns on copper spot prices and copper future prices. To best of our knowledge, this is the first study which explores the relationship between copper stock returns and Local and Global EPU.…”

Section: Introductionmentioning

confidence: 99%

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How does China economic policy uncertainty (EPU) impact copper-firms stock returns and copper prices returns?

Maquieira

Flores

Espinosa

2023

ARLA

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PurposeThis study focuses on how China EPU may impact copper-firms stock returns and also how China EPU mediates between stock returns and copper prices returns.Design/methodology/approachThe sample consists of 44 copper firms from January 2011 to March 2022. The study also considers a subsample of 29 net-exporters countries. Panel data methodology is used, allowing to control for unobservable heterogeneity and endogeneity problems. The equations are estimated through a dynamic panel using the generalized methods of moments (GMM).FindingsChina EPU has a negative and statistically significant relationship with stock returns. Copper price returns are positively associated with stock returns. This research also considers two scenarios: high and low levels of China EPU. For high levels of China EPU states it is reported a negative relationship between stock returns and China EPU and copper price returns show a positive relationship with stock returns.Research limitations/implicationsThere is need to explore other metals for what China exhibits a high demand and observe if China EPU and Global EPU have similar impacts on stock returns. It will be useful to identify main firm's consumers of copper and these other metals to explore the relationship between EPU and stock returns.Originality/valueTo the best of the authors’ knowledge, this is the first paper that analyzes China EPU index and its impact on both copper-firms stocks returns and on changes in copper prices. This is done using all public copper firms worldwide.

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Section: Hypotheses and Modelsmentioning

confidence: 99%

Section: Conclusion and Recommendationsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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How does China economic policy uncertainty (EPU) impact copper-firms stock returns and copper prices returns?

Maquieira

Flores

Espinosa

2023

ARLA

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“…Notably, this study employs the nonlinear Autoregressive Distributed Lag model (NARDL), which is also used in this thesis and its associated research. Maquieira et al (2023) explore the impact of economic policy uncertainty (EPU) on the stock returns of copper firms. Additionally, Islam et al (2022) examine the responses, (in the form of influences on mineral imports) to global geopolitical risk events and EPU.…”

Section: Paper Imentioning

confidence: 99%

Navigating interconnected and electrified industries in the landscape of uncertainty : Exploring outcomes and values within circular solutions, and Swedish electricity supply and utilisation dynamics

Wadström

2023

Linköping Studies in Science and Technology. Dissertations

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As the global community faces unprecedented climate change challenges, the transition towards a sustainable society has become an urgent priority. The complexity of this transition is characterised by the interplay of developing and implementing green manufacturing processes, integrated energy systems, and circular resource flows, and the inherent dynamics associated with geopolitical uncertainties, energy price fluctuations, and global instability. Although new technological advancements and more sustainable models are on the rise, a significant knowledge gap remains in comprehending the intricate dependencies and impacts of various uncertainties on complex industrial and energy systems. Dependency means that one component, subsystem, or variable relies on another for its operation or effectiveness. A change in one element will directly affect the other, causing changes in its status or actions. Because the components are interconnected in this way, they are not independent of each other. This knowledge gap is particularly noticeable in the lack of a comprehensive understanding of the interactions between the energy system and uncertainties. This became significantly more apparent during events such as the COVID-19 pandemic and the subsequent Russian invasion of Ukraine. IntroductionAbundant, clean, and affordable energy is crucial for realising the vision of a modern, industrialised, and sustainable society (Tainter, 1988). Hence, a systemic shift towards a renewable and electrified energy system on a massive scale is necessary to achieve rapid emissions reductions (IPCC, 2023). If new energy demand and electric power capacity were instead built on fossil fuels rather than renewable sources, the consequences could be severe. This would worsen climate change, as electricity generation based on fossil fuels leads to ongoing emission of carbon dioxide and other greenhouse gases. It could also entrench unsustainable infrastructure for an extended period, thereby prolonging the unsustainable reliance on limited fossil resources (IPCC, 2023). Furthermore, persisting reliance on fossil fuels could compromise energy security (Correlje & Van der Linde, 2006;Yergin, 2006).Transitioning to renewable energy sources can avert these risks, promoting a more self-reliant, sustainable, and secure energy future (IEA, 2022b). This involves adopting low-or zero-emission technologies and biogenic energy sources (Demirbas, 2009), curbing energy and material demand, modifying behavioural patterns, and enhancing efficiency. The diminishing carbon budget means that energy systems must quickly transition towards net-zero CO2 emissions by decreasing fossil fuel dependence, applying carbon capture, widespread electrification, utilising and improving energy conservation, efficiency, and energy system integration (IEA, 2022b(IEA, , 2023bIPCC, 2023).The growth of renewable energy is not just about increasing renewable electric power capacity and biogenic energy sources; rather, it is more about incorporating and coordinating multiple technol...

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Impact of Global Risk Factors on the Islamic Stock Market: New Evidence from Wavelet Analysis

Kazak,

Saiti,

Kılıç

et al. 2024

Comput Econ

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The emergence of Islamic finance as an alternative financial investment area and the increasing political and economic uncertainty around the world necessitated an examination of the relationship between these two factors. This study examines the impact of four important global uncertainty and risk indicators “Global Economic Policy Uncertainty-GEPU, Geopolitical Risk Index-GPR, World Uncertainty Index-WUI, and CBOE Volatility Index-VIX” on two important Islamic stock market indices (Dow Jones Islamic Market Index and Bist Participation 100) using wavelet coherence (WTC) and asymmetric Fourier TY analyzes Quarterly data for the period March 2011–June 2023 were used in the study. The results of the analysis show that economic instability indicators impact Islamic equity market indices (both in Turkey and the world). This effect is determined as VIX, GEPU, GPR, and WUI. In addition, the fact that the GPR and WUI indices, which have an impact on conventional markets, have truly little and only a partial impact on Islamic equity markets is an important finding. The results of this study make important contributions to the literature and provide important findings for investors and policy makers.

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How does economic policy uncertainty (EPU) impact copper-firms stock returns? International evidence

Cited by 16 publications

References 34 publications

How does China economic policy uncertainty (EPU) impact copper-firms stock returns and copper prices returns?

How does China economic policy uncertainty (EPU) impact copper-firms stock returns and copper prices returns?

Navigating interconnected and electrified industries in the landscape of uncertainty : Exploring outcomes and values within circular solutions, and Swedish electricity supply and utilisation dynamics

Impact of Global Risk Factors on the Islamic Stock Market: New Evidence from Wavelet Analysis

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