Oil Crisis and Stock Return: Case of Demand Driven and Supply Driven Oil Prices Shocks of 2007-08 and 2014-15 in Pakistan
This study aims to investigate the relationship between the stock returns and the oil prices in Pakistan. The distinctive relationship was worked for two time periods representing the two oil price shocks, at times of demand driven and supply driven oil price shock of2007-08 and 2014-15 respectively...
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Published in | University of Haripur Journal of Management (UOHJM) Vol. 2; no. 1; pp. 175 - 188 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Khyber Pakhtunkhwa
University of Haripur, Journal of Management (UOHJM)
01.04.2017
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Subjects | |
Online Access | Get full text |
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Summary: | This study aims to investigate the relationship between the stock returns and the oil prices in Pakistan. The distinctive relationship was worked for two time periods representing the two oil price shocks, at times of demand driven and supply driven oil price shock of2007-08 and 2014-15 respectively. The analysis was based on cointegration test, vector auto regression model and granger causality. The study concluded that all the variables were correlated for both the oil price shocks while in demand driven oil price shock, the oil prices did not had impact on stock returns of KSE while for supply driven oil price shock, the oil prices influenced the stock returns. The study has implications for both investors and the policy makers in comprehending the behavior of stock returns against the oil price volatility in international markets. |
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ISSN: | 2415-5098 |