IDEAS home Printed from https://ideas.repec.org/a/ijr/beejor/v3y2015i3p119-145.html
   My bibliography  Save this article

Oil Price Fluctuations and Industry Stock Return

Author

Listed:
  • Reza Tahmoorespour

    (Graduate School of Management (GSM), Universiti Putra Malaysia, Malaysia)

  • Marjan Rezvani

    (Graduate School of Management (GSM), Universiti Putra Malaysia, Malaysia)

  • Meysam Safari

    (Graduate School of Management (GSM), Universiti Putra Malaysia, Malaysia)

  • Elias Randjbarand

    (Aerospace Manufacturing Research Centre (AMRC), Faculty of Engineering, Selangor, Malaysia)

Abstract

This study investigates the impact of oil price variation on 14 industries in six markets, including Canada, China, France, India, the United Kingdom, and the United States. Panel weekly data were collected from June 1998 to December 2011. The results indicate that price fluctuations primarily affect the Oil and Gas as well as the Mining industries and have the least influence on the Food and Beverage industry. Furthermore, in three out of six of these countries (Canada, France, and the U.K.), oil price changes negatively affect the Pharmaceutical and Biotechnology industry. One possible reason for the negative relationship between oil price changes and the Pharmaceutical and Biotechnology industries in the above-mentioned countries is that the governments of these countries fund their healthcare systems. Portfolio managers and investors will find the results of this study useful because it enables adjusting portfolios based on knowledge of the industries that are impacted the most or the least by oil price fluctuations.

Suggested Citation

  • Reza Tahmoorespour & Marjan Rezvani & Meysam Safari & Elias Randjbarand, 2015. "Oil Price Fluctuations and Industry Stock Return," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 119-145, September.
    • Handle: RePEc:ijr:beejor:v:3:y:2015:i:3:p:119-145
    as

    Download full text from publisher

    File URL: http://tesdo.org/shared/upload/pdf/papers/BEE,%203_3_,%20119-145%20.pdf
    Download Restriction: no
    File URL: http://tesdo.org/journal_detail.php?paper_id=138&expand_year=2015
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Usman & Danish Ahmed Siddiqui, 2019. "The Effect of Oil Price on Stock Market Returns with Moderating Effect of Foreign Direct Investment & Foreign Portfolio Investment: Evidence from Pakistan Stock Market," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 7(2), pages 45-61, June.
    2. Nurkhodzha Akbulaev & Etimad Rahimli, 2020. "Statistical Analysis of the Relationship between Oil Prices and Industry Index Prices," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 324-331.

    More about this item

    Keywords

    Oil Prices; Stock Returns;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F3 - International Economics - - International Finance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijr:beejor:v:3:y:2015:i:3:p:119-145. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Shahbaz (PhD Applied Economics) (email available below). General contact details of provider: https://edirc.repec.org/data/tesdopk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.