Recent research has identified several industry-related patterns that standard asset pricing models cannot explain effectively. This paper investigates whether industry commodity dependence affects the cross section of stock returns, using the case of oil industry. The results show that in the...

In this paper we examine the drivers of stock market value in the upstream (producers) and downstream segments (petroleum refiners) of the oil industry.Using a sample of U.S. firms we find that stock returns of upstream and downstream firms follow stock market and oil price returns. Moreover,...