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The Relationship between the Stock Price and the Energy Index: A Research on the Energy Company with the Highest Brand Value in Turkey

Author

Listed:
  • Nigar Huseynli

    (Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan; PhD candidate, Sakarya University, Sakarya, Turkey.)

  • Bahman Huseynli

    (Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan; State Employment Agency, Baku, Azerbaijan.)

Abstract

The energy sector is one of the main drivers for the activity of other sectors. In this study, the causality between the BIST energy index values and the stock prices of Enerjisa, the energy company with the highest brand value in Turkey, in the period between January 2011 and June 2022, using the Granger causality test, was examined. Before proceeding to the Granger method, a series of necessary tests were carried out in accordance with the methodology, and appropriate lag lengths were determined. As a result of the study, a bilateral causality relationship was determined between the stock prices of Enerjisa company and the BIST energy index values. In other words, these variables become the Granger cause of each other.

Suggested Citation

  • Nigar Huseynli & Bahman Huseynli, 2022. "The Relationship between the Stock Price and the Energy Index: A Research on the Energy Company with the Highest Brand Value in Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 183-187, November.
    • Handle: RePEc:eco:journ2:2022-06-24
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    References listed on IDEAS

    as
    1. Altinay, Galip & Karagol, Erdal, 2004. "Structural break, unit root, and the causality between energy consumption and GDP in Turkey," Energy Economics, Elsevier, vol. 26(6), pages 985-994, November.
    2. Berna Aydogan & Istemi Berk, 2015. "Crude Oil Price Shocks and Stock Returns: Evidences from Turkish Stock Market under Global Liquidity Conditions," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 54-68.
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    More about this item

    Keywords

    Stock price; Energy index; Brand value; Turkey;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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