Examining the Relationship between Oil Prices and Stock Returns: Evidence from OECD Countries

Havane Tembelo and Mustafa Ozyesil
Additional contact information
Havane Tembelo: Istanbul Aydin University, Istanbul, Turkey
Mustafa Ozyesil: Istanbul Aydin University, Istanbul, Turkey

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 3, 307-315

Abstract: This study uses data from the OECD countries to investigate the relationship between stock returns and oil prices. The study uses daily closing values for analysis and covers the years 2000 - 2022. Oil prices are taken as the independent variable and stock returns as the dependent variable using the panel data analysis. The analysis includes intermediary factors as GDP and inflation. The research begins with a unit root test, followed by a panel co-integration test. Finally, the panel causality test and panel regression results are interpreted. This study primarily aims to explore the effect of oil price volatility on stock returns. Results show a statistically significant positive association between stock returns and oil prices. These findings highlight the importance of oil prices as a determinant of stock returns in the financial markets and provide investors, financial institutions and policymakers valuable insights.

Keywords: Oil Prices; Stock Returns; Volatility; Panel Data; OECD Countries (search for similar items in EconPapers)
JEL-codes: C12 E30 L94 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/15913/7874 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/15913 (text/html)

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:eco:journ2:2024-03-31

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().