Oil price uncertainty, corporate governance and firm performance

We investigate whether oil price uncertainty affects Chinese firms' operating performances and the moderating role of corporate governance practices in this relationship. Using a sample of 2,696 Chinese listed firms from 2007 to 2019, we find that oil price uncertainty negatively affects Chinese firms’ operating performances. Notably, the negative effect is statistically significant in the aggregate market and the energy-related sector but not in the non-energy-related sector. Furthermore, managerial incentives can help firms mitigate the adverse effect of oil price uncertainty, whereas managerial monitoring cannot.