| dc.description.abstract | This paper examines how oil price uncertainty (OPU) affects inventory
investment of the U.S. listed firms during the years 1985-2020. I empirically find the
negative association between OPU and corporate inventory investment. This adverse
effect is exacerbated for firms operating in oil industries or located in non-oil-producing
states. High financial constraints or external finance dependence, extreme industry
competition, and low irreversible investment also transmission channels strengthening
the effect of OPU inventory adjustment. My findings survive a battery of robustness
checks, in which alternative and control variables are applied. Overall, my study implies
that inventory management is profoundly shaped by OPU. | en_US |
