Energy‐Related Uncertainty and Corporate Financialization

ABSTRACT This paper examines the link between energy uncertainty and corporate financialization using data from 545 nonfinancial listed firms in Vietnam over 2007–2024. We find that higher energy uncertainty is associated with higher financial asset holdings. Mechanism analysis supports both real options and precautionary motives, as firms tend to delay real investment and shift toward liquid financial assets, particularly under conditions of tighter financial constraints. The effect is weaker for state‐owned enterprises but stronger in energy‐intensive industries and during economic downturns. Overall, the results suggest that energy uncertainty is associated with lower real investment and greater precautionary financialization, highlighting the importance of stabilizing energy markets.