The effect of international crude oil price volatility on the performance of listed firms in Vietnam

Abstract

This study evaluates the effect of international crude oil price volatility on the performance of listed companies in Vietnam, using the System-Generalized Method of Moments (SGMM) estimation on a sample of 368 firms listed on HOSE and HNX from 2010 to 2022. The results show that crude Oil Price Volatility (OPV) negatively and significantly affects firm profitability. Additionally, OPV has a positive and significant effect on the operating costs to net revenue ratio of Vietnamese listed companiesVietnamese listed companies' operating costs to net revenue ratio. Overall, empirical results show that an increase in OPV impedes the performance of listed firms in Vietnam. The research also proposes policy implications to help listed firms stabilize their performance in the heightened volatile context of international crude oil prices.