Open AccessA Study on the Effect of Oil Price Variations on Stock Returns under Environmental Uncertainty (Sales)
Author(s) -
Sakineh Ayoubi,
Farzin Rezaei
Publication year - 2016
Publication title -
bulletin de la société royale des sciences de liège
Language(s) - English
Resource type - Journals
ISSN - 1783-5720
DOI - 10.25518/0037-9565.5877
Subject(s) - oil price , stock (firearms) , economics , cost price , econometrics , regression analysis , commodity , seemingly unrelated regressions , crude oil , financial economics , stock price , agricultural economics , monetary economics , statistics , mathematics , finance , mechanical engineering , paleontology , series (stratigraphy) , petroleum engineering , biology , engineering
Oil is a commodity considered the most important export product in many countries, playing a key role in the economies. That is why oil price variations can have direct effects on economic sectors. Uncertainty caused by unpredictable oil prices can have a huge impact on the economic body. The main purpose of this study was to find the relationship between oil price variations on stock returns under environmental uncertainty during 2005-2014. The effect of environmental uncertainty on the relationship between oil price variations and stock returns were examined. The regression method and EVIWSE9 were used to evaluate the hypothesis. The results of regression showed that uncertainty, i.e. sales fluctuation at confidence level of 95% did not have a significant effect on the relationship between oil price variations and stock return.