Does oil price affect the performance of electronic-vehicle companies in China?

Abstract

This article hypothesizes the impact of oil prices on electric vehicle companies' performance and uses the monthly rate of change in oil prices from 2015 to 2020 and the implementation of 50 leading electric vehicle companies. I found a negative relationship between the oil price change rate and the company's return on assets. It shows that the oil price change rate will have a negative effect on electronic vehicle firm performance. After that, I do the Robustness check by changing return on asset to return on equity and find the same result between oil price change rate and return on equity. The result shows that the oil price change rate will affect the firm performance. It fills the blank for the oil price in electronic vehicle firm performance area. For the electronic vehicle company, manager can refer to oil price change rate to do adjustment. It will convince the electronic vehicle company to manage the firm performance.