WACCl in OECD Countries (SK NACE 1920) and Speculative Trading Volumes on the Oil Market: A Five-Year Correlation Study
WACC in OECD Countries (SK NACE 1920) and Speculative Trading Volumes on the Oil Market: A Five-Year Correlation Study
Author(s): Rebeka Cepelova, Marcel FIGURASubject(s): Supranational / Global Economy, Business Economy / Management, Micro-Economics, Energy and Environmental Studies, Financial Markets, Socio-Economic Research
Published by: Žilinska univerzita v Žiline, Fakulta prevádzky a ekonomiky dopravy a spojov, Katedra ekonomiky
Keywords: weighted average cost of capital; speculative trading; oil market; OECD countries; correlation analysis;
Summary/Abstract: This research calculates correlations between the Weighted Average Cost of Capital (WACC) and speculative trading volumes in the crude oil market for the petroleum products manufacturing sector in OECD countries. WACC was calculated for 96 companies in 16 OECD countries. Findings show country-specific WACC disparities, with Greece, Poland, and Germany exhibiting the highest values. While speculative trading showed no direct effect on WACC, its indirect impact through crude oil price volatility is significant. A positive correlation exists between Brent crude oil futures prices and WACC, indicating that rising oil prices increase the cost of capital for petroleum companies. The study concludes that while speculative trading doesn't directly affect WACC, its influence on oil price volatility significantly impacts the financial environment for petroleum companies. Further research on the relationship between WACC and speculative trading is recommended.
Journal: Ekonomicko-manazerske spektrum
- Issue Year: 18/2024
- Issue No: 2
- Page Range: 99-110
- Page Count: 12
- Language: English
