Oil, Oil Volatility and Airline Stocks: A Global Analysis

Mohan Nandha (), Robert Brooks and Robert Faff

Journal of Accounting and Management Information Systems, 2013, vol. 12, issue 2, 302-318

Abstract: By selecting a globally representative dataset of airline indices, this study demonstrates that oil price or oil price regimes (delineated by the first gulf war and the 9/11 terror attacks) alone do not have any significant implications for airline stock prices. Overall, these findings are contrary to the general perception that higher oil prices or oil volatility are bad news for the airlines industry. Perhaps airlines are in a better position to estimate their oil risk and take hedging positions as appropriate. However, airlines stocks appear to be significantly prone to the combined effects of oil volatility and oil regimes determined by the globally significant events/ shocks.

Keywords: Oil price; oil volatility; airlines; gulf war; 9/11 attacks (search for similar items in EconPapers)
JEL-codes: G15 Q43 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://online-cig.ase.ro/RePEc/ami/articles/12_2_8.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ami:journl:v:12:y:2013:i:2:p:302-318

Access Statistics for this article

More articles in Journal of Accounting and Management Information Systems from Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies
Bibliographic data for series maintained by Cristina Tartavulea ().