The Impact of Oil Prices on The Transportation Industry Stock Returns: The Case of the Turkish Equity Market

Türker Açıkgöz and Özge Sezgin Alp

Journal of Research in Economics, Politics & Finance, 2023, vol. 8, issue 3, 425-439

Abstract: This study examines the impact of crude oil prices on transportation sector stock returns of Turkey. ARDL Bound Test approach is utilized to investigate both long-run and short-run impacts. Research findings show that crude oil prices have an adverse impact on stock returns in short-run since oil is a crucial input for transportation firms. However, in long-run, increasing oil prices enhance stock returns in the sector. This result can be explained by the oligopolistic market structure of the industry. This study also investigated the impact of other factors on stock returns such as macroeconomic activity, aggregate stock market performance, and global economic policy uncertainty. The results imply that transportation sector returns are also highly sensitive to macroeconomic and aggregate stock market performances. Besides its academic contribution to the literature, the findings of this research offer precious practical implications for financial investors, industry stakeholders, and policymakers as well.

Keywords: Stock returns; Crude oil; ARDL Bound Test; Transportation industry (search for similar items in EconPapers)
JEL-codes: D53 E44 G11 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ahs:journl:v:8:y:2023:i:3:p:425-439

DOI: 10.30784/epfad.1297913

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