Oil Prices and Stock Market Returns in Oil Exporting Countries: Evidence from Saudi Arabia

Authors

  • Reem Khamis Ph.D. Scholar, Brunel University, UK.
  • Mohammad Anasweh Assistant Professor, Finance & Banking Department, College of Business, Mutah University – Jordan.
  • Allam Hamdan Associate Professor, Chairperson of Accounting and Economics Department, Ahlia University – Bahrain.

Abstract

This study aims at investigating the reaction of Saudi Arabia stock market towards oil price fluctuations a sectoral level in particular. The study covered 4 years from (2012-2015). This time series witnessed historical high and low oil prices. The results of the study added a new evidence for the asymmetric reaction of stock markets towards oil prices that was reported by previous studies. The study used Granger causality and regression tests to explore the dynamics of sectoral responses. Saudi Arabia stock market proved that they faced the current oil drops bravely although certain sectors need to unbind or reduce their relation with oil markets to reduce the consequences of low oil prices on them. Several avenues for future studies are opened to investigate all GCC stock markets and use other methodologies to better understand the dynamics of GCC market sectors towards oil prices fluctuations.Keywords: Saudi Arabia stock market; oil prices; granger causality.     JEL Classifications: E44, Q21

Downloads

Download data is not yet available.

Downloads

Published

2018-05-08

How to Cite

Khamis, R., Anasweh, M., & Hamdan, A. (2018). Oil Prices and Stock Market Returns in Oil Exporting Countries: Evidence from Saudi Arabia. International Journal of Energy Economics and Policy, 8(3), 301–306. Retrieved from https://econjournals.com/index.php/ijeep/article/view/6541

Issue

Vol. 8 No. 3 (2018)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.