An Empirical Research : Impact of the Changes of Oil Prices over Stock Market Prices

Authors

  • Dr. Manjari Sharma  Department of Business & Accountancy, Lincoln University College, Malaysia
  • Dr. Sharad Gupta  Department of Business & Accountancy, Lincoln University College, Malaysia
  • Dr. Ahmed H. Al-Shibami  Department of Business & Accountancy, Lincoln University College, Malaysia

Keywords:

Stock Market prices, changes of Oil Prices

Abstract

The stock market volatility is a well-known phenomenon. These volatility and fluctuations are empirical proven but which macroeconomic factor affect stock prices in what proportion and with what frequency is not well known phenomenon. Although, there are many macroeconomic factors that affect the stock market, however, we considered only one macroeconomic factor for the purpose of this research paper; that is, oil prices and its impact on the stock market prices. Therefore, the aim of this research paper is to investigate the empirical relationship between oil prices shocks and stock market. An empirical approach has been utilized to accomplish this research paper. The findings of this research paper concludes that stock market and oil prices are related but under what circumstances how it will react is uncertain. JEL: E44, E03

References

  1. Bjornland, C.H. (2009). Oil price shocks and stock market booms in an oil exporting country. Scottish Journal of Political Economy, 2(5), 232-254.
  2. Chen, Nai-fu, Ricbard Roll, and Stephen A. Ross, 1986, Economic forces and the stock market. Journal of Business 56, 383-403.
  3. BP Global, Energy Statistics, Statistical Review http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-energy/review-by-energy-type/oil/oil-prices.html  Accessed on October 3, 2015
  4. The New York Times, Energy & Environment, Oil Prices: What’s Behind the Drop? Simple Economics by CLIFFORD KRAUSS http://www.nytimes.com/interactive/2015/business/energy-environment/oil-prices.html?_r=0 Accessed on October 3, 2015
  5. Reuters,  Market, Oil dips as U.S. keeps alive hopes of Iran nuclear deal BY BARANI KRISHNAN http://www.reuters.com/article/2015/07/13/us-markets-oil-idUSKCN0PN01820150713 Accessed on October 4, 2015
  6. http://www.vox.com/2015/7/14/8962651/oil-prices-iran-nuclear-deal, Accessed on October 4, 2015
  7. Huang, R., R. Masulis, and H. Stoll (1996), “Energy Shocks and Financial Markets,” Journal of Futures markets 16, 1-27.
  8. Jones, C. and G. Kaul (1996), “Oil and Stock Markets,” Journal of Finance, 51, 463-491.
  9. Jones, C. M. and G. Kaul (1996), “Oil and the stock markets.” Journal of Finance, 51, 463–491.
  10. Jones, D. W., P. N. Leiby and I. K. Paik (2004), “Oil Price Shocks and the Macroeconomy: What Has Been Learned Since 1996,” The Energy Journal, 25, 1-32
  11. New York Times, Energy & Environment; Oil Prices: What’s Behind the Plunge? Simple Economics; By Clifford Krauss Updated September 30, 2015
  12. Reuters, Markets, “Oil dips as U.S. keeps alive hopes of Iran nuclear deal”, New York, By Barani Krishnan
  13. The New York Times, Middle East; “The Iran Nuclear Deal – A Simple Guide”, By William J. Broad And Sergio Peçanha http://www.nytimes. com/interactive/2015/03/31/world/middleeast/simple-guide-nuclear-talks-iran-us.html?_r=0 Accessed on October 4, 2015
  14. Vox, Energy & Environment, “What the Iran nuclear deal means for oil prices”,
  15. Wei, C. (2003), “Energy, the Stock Market, and the Putty-Clay Investment Model,” American Economic Review 93, 311-323.
  16. Oilprice.com By Chris Pedersen Posted on Mon, 13 October 2014 , 5 Reasons Oil Prices Are Dropping http://oilprice.com/Energy/Oil-Prices/5-Reasons-Oil-Prices-Are-Dropping.html Accessed on October 14, 2015
  17. Nasdaq, Crude Oil, WTI (NYMEX) Price, End of day Commodity Futures Price Quotes for Crude Oil WTI (NYMEX) http://www.nasdaq. com/markets/crude-oil.aspx?timeframe=10y Accessed on October 14, 2015.
  18. Gandel, S. (2014).  Stock market plunge: Why oil matters [Online] Available at http://fortune.com /2014/10/15/stock-market-plunge-oil-prices/ Accessed on September 25, 2015

International Journal of Scientific Research in Science and Technology

Downloads

Published

2016-04-30

Issue

Volume 2, Issue 2, March-April-2016

Section

Research Articles

License

Copyright (c) IJSRST

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

[1]
Dr. Manjari Sharma, Dr. Sharad Gupta, Dr. Ahmed H. Al-Shibami, " An Empirical Research : Impact of the Changes of Oil Prices over Stock Market Prices, International Journal of Scientific Research in Science and Technology(IJSRST), Online ISSN : 2395-602X, Print ISSN : 2395-6011, Volume 2, Issue 2, pp.174-180, March-April-2016.