Beschreibung:
Changes in crude oil prices affect corporate debt position. This study investigates the association between changes in debt and crude oil price volatility in nonfinancial, BG, and SA firms in India. We use financial variables, crude oil prices, and macroeconomics data from 2004 to 2020 for 16,452 firm-years and employ OLS models and GMM regressions to test the hypotheses. The results revealed that debt position and crude oil price volatility significantly have different effects on business group (BG) and stand-alone (SA) firms. Crude oil price volatility is positively related to changes in the debt position. The effects of financial variables also significantly differ for the BG and SA firms. Finally, firms change their debt position in the positive or negative direction based on fluctuations in crude oil prices. Policy implications have also provided