Debt Finance, Inventory Management and Economic Value of Energy Industry in Saudi Arabia: Empirical Investigation

Khaled Salmen Aljaaidi, Omar Ali Bagais

Abstract


The purpose of this paper is to identify the relationships of debt finance and inventory management with firm economic value of energy industry in Saudi Arabia, from 2012 to 2019. The sample comprises of 32 firm-year observations throughout the eight years’ time frame until 2019. Pearson’s correlation, Pooled OLS Regression are used in this study. The findings of this study indicate to a negative association between debt finance and firm economic value. Furthermore, a positive association is reported between inventory management and firm economic value. The results of this study are important for energy industry in Saudi Arabia in making decisions related to debt financing. In addition, energy industry can use the results of this study in controlling their inventory practices. Further, the results of this study can be used in future research to gain a deeper understanding of the issues of debt finance, inventory management and firm economic value.  

Keywords: Debt finance, inventory management, economic value, energy industry, Saudi Arabia.

JEL Classifications: L25, G51, H68, O13, P18, P28, P48

DOI: https://doi.org/10.32479/ijeep.10085


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