A note on vertical integration and stock ratings of oil companies in the US

Authors
Edwards, K Jackson, JD Thompson, HL
Citation
K. Edwards et al., A note on vertical integration and stock ratings of oil companies in the US, ENERGY J, 21(2), 2000, pp. 145-151
Citations number
6
Categorie Soggetti
Economics,"Environmental Engineering & Energy
Journal title
ENERGY JOURNAL
ISSN journal
01956574 → ACNP
Volume
21
Issue
2
Year of publication
2000
Pages
145 - 151
Database
ISI
SICI code
0195-6574(2000)21:2<145:ANOVIA>2.0.ZU;2-D
Abstract
This note examines some evidence for a link between profitability of oil co mpanies and operational vertical integration into pipelines and crude oil, An empirical specification is estimated using ordered probit. Levels of int egration into pipeline and crude that maximize stock ratings are derived us ing recent oil company data. Integration into pipelines has a weak positive effect on the stock ratings of oil companies, and integration into crude o il has a stronger positive effect.