Stock Prices Reaction to Oil Price Fluctuations: Empirical Evidence from Nigeria

Henry Inegbedion, Eseosa Obadiaru and Olamide Adeyemi
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Henry Inegbedion: Department of Business Studies, Landmark University, Omu Aran, Nigeria,
Eseosa Obadiaru: Department of Accounting and Finance, Landmark University Omu Aran, Nigeria.
Olamide Adeyemi: Department of Business Studies, Landmark University, Omu Aran, Nigeria,

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 5, 142-149

Abstract: The study investigated stock market reactions to oil price fluctuations in Nigeria. A longitudinal design consisting of data on the Nigerian Stock market index, crude oil prices, exchange rate, interest rate, inflation rate and GDP for the period 1984-2019 was employed. The data were subjected to stationarity and cointegration tests using ADF and Johansen s techniques. Based on the results of the stationarity and cointegration tests, Vector error correction model was used to analyse the research data. The results indicate that crude oil prices have short-run and long-run effects on stock market returns. Exchange rate was found to have significant short-run effect on stock market returns.

Keywords: Stock market returns; crude oil prices; oil price fluctuations; exchange rate; interest rate (search for similar items in EconPapers)
JEL-codes: H25 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2020-05-18

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