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...

Full description

Saved in:
Bibliographic Details
Published inUniversity of Haripur Journal of Management (UOHJM) Vol. 2; no. 1; pp. 175 - 188
Main Authors Shakeel, Zainab, Tanveer, Sarfaraz, Khan, Asad
Format Journal Article
LanguageEnglish
Published Khyber Pakhtunkhwa University of Haripur, Journal of Management (UOHJM) 01.04.2017
Subjects
Capital markets
Developing countries
Economic models
Efficient markets
Energy economics
Energy prices
Foreign exchange rates
Investments
LDCs
Monetary policy
Natural gas utilities
Prices
Rates of return
Securities markets
Stock exchanges
Studies
Volatility
Greece
Pakistan
United States > US
Asia
China
Online AccessGet full text

Cover

More Information
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.
ISSN:2415-5098