Testing the significance of pricing factors of oil and gas companies

García Amate, Antonio Jesús; Molero-González, Laura; Sánchez-Granero, Miguel Ángel; Trinidad-Segovia, Juan Evangelista; García-Medina, Andrés

Testing the significance of pricing factors of oil and gas companies

dc.contributor.author	García Amate, Antonio Jesús
dc.contributor.author	Molero-González, Laura
dc.contributor.author	Sánchez-Granero, Miguel Ángel
dc.contributor.author	Trinidad-Segovia, Juan Evangelista
dc.contributor.author	García-Medina, Andrés
dc.contributor.department	Gestión de Empresas	es_ES
dc.contributor.department	Enpresen Kudeaketa	eu
dc.contributor.department	Institute for Advanced Research in Business and Economics - INARBE	en
dc.date.accessioned	2025-03-24T11:30:54Z
dc.date.available	2025-03-24T11:30:54Z
dc.date.issued	2024-12-30
dc.date.updated	2025-03-24T11:17:32Z
dc.description.abstract	For decades, fossil fuels have accounted for 70% to 80% of global primary energy demand. Far from ending this trend, O&G companies continue to be the main fore-runners in providing secure, versatile and widespread energy to the entire world. The relevance of this sector in the economic-financial landscape and the concern for its stability, makes that the high interest of the scientific community to explore the factors that explain the O&G cross-sectional expected returns remains intact. Through a new approach from the Random Matrix Theory, the aim is to know how many are the factors that explain the market performance of the O&G subsectors (upstream, midstream & downstream), and also if the Brent price can be considered an explanatory factor. We will show that for certain periods, Brent becomes the only factor explaining the movements in the upstream and midstream subsectors, while for most of the time the only factor is the market. Other interesting finding is that no significant factors are found for the downstream subsector, except in certain periods. With a purely statistical approach, we show the factors that explain the cross-sectional expected return of the O&G companies, providing information of special relevance for the decision making of investors, executives and politicians.	en
dc.description.sponsorship	Grant PID2021-127836NB-I00 (Ministerio Español de Ciencia e Innovacion and FEDER) \| Grant PID2021-127836NB-I00 (Ministerio Español de Ciencia e Innovacion and FEDER) and CDTIME \| Financial support by Consejo Nacional de Ciencia y Tecnolog¿a (CONACYT, Mexico) through fund FOSEC SEP-INVESTIGACION BASICA (Grant No. A1-S-43514).
dc.format.mimetype	application/pdf	en
dc.format.mimetype	application/msword	en
dc.identifier.citation	García-Amate, A., Molero-González, L., Sánchez-Granero, M. A., Trinidad-Segovia, J. E., García-Medina, A. (2024). Testing the significance of pricing factors of oil and gas companies. PLOS One, 19(12), 1-18. https://doi.org/10.1371/journal.pone.0316147.
dc.identifier.doi	10.1371/journal.pone.0316147
dc.identifier.issn	1932-6203
dc.identifier.uri	https://academica-e.unavarra.es/handle/2454/53797
dc.language.iso	eng
dc.publisher	PLOS
dc.relation.ispartof	PLoS ONE (2024), vol. 12, e0316147
dc.relation.projectID	info:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2021-2023/PID2021-127836NB-I00/ES/
dc.relation.projectID	info:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2021-2023/PID2021-127836NB-I00/ES/
dc.relation.publisherversion	https://doi.org/10.1371/journal.pone.0316147
dc.rights	© 2024 Garcia-Amate et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
dc.rights.accessRights	info:eu-repo/semantics/openAccess
dc.rights.uri	https://creativecommons.org/licenses/by/4.0/
dc.subject	Oil and Gas (O&G)	en
dc.subject	Financial markets	en
dc.subject	Stock performance	en
dc.subject	Random Matrix Theory (RMT)	en
dc.title	Testing the significance of pricing factors of oil and gas companies	en
dc.type	info:eu-repo/semantics/article
dc.type.version	info:eu-repo/semantics/publishedVersion
dspace.entity.type	Publication
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