Oil Price Shocks and the Financial Performance Patterns of Logistics Service Providers

Item Type Journal paper
Abstract This paper examines the influence of oil price shocks on the financial performance of logistics service providers. By applying the structural vector auto regression (SVAR) methodology to the data of 301 logistics service providers (LSPs) from 2004 to 2014, based on annual and half-yearly report data (in total 6020 firm-years), it is shown that oil price changes are absorbed in a variety of ways by different types of companies. Fluctuations in oil prices negatively affect the transportation industry – with minor restrictions in asset-light clusters and companies which consume little to no oil. Our analysis also shows that oil price shocks result in effects of different magnitude and length with respect to the type of LSP. Thus, some LSP clusters adapt quicker to oil price changes than others and are better able to absorb price shocks. An innovative approach is applied to examine LSP performance; SVAR, a widespread model in economics, is used to analyse the LSP sector. The results are important for financial planning of the management of different LSP types as well as their customers.
Authors Hofmann, Erik; Solakivi, Tomi; Töyli, Juuso & Zinn, Martin
Journal or Publication Title Energy Economics
Language English
Subjects economics
HSG Profile Area SoM - Business Innovation
Refereed Yes
Date May 2018
Publisher Elsevier
Place of Publication Amsterdam [u.a.]
Volume 72
Page Range 290-306
ISSN 0140-9883
ISSN-Digital 1873-6181
Publisher DOI https://doi.org/10.1016/j.eneco.2018.04.006
Official URL https://www.sciencedirect.com/science/article/pii/...
Depositing User Prof. Dr. Erik Hofmann
Date Deposited 27 Apr 2018 16:42
Last Modified 20 Jul 2022 17:34
URI: https://www.alexandria.unisg.ch/publications/254107

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Hofmann, Erik; Solakivi, Tomi; Töyli, Juuso & Zinn, Martin (2018) Oil Price Shocks and the Financial Performance Patterns of Logistics Service Providers. Energy Economics, 72 290-306. ISSN 0140-9883

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https://www.alexandria.unisg.ch/id/eprint/254107
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