 The impact of oil on equity returns of Canadian and U.S. Railways and airlinesRobert N. Killins The North American Journal of Economics and Finance, 2020, vol. 52, issue C Abstract: The purpose of this paper is to investigate the relationship between oil price movements and equity returns of railways and airline in Canada and the U.S. Using a robust set of oil measures, which includes both West Texas Intermediate (WTI) and Western Canadian Select (WCS) data, this research finds that railways and airlines react uniquely to oil price movements. Specifically, equity returns of railways in Canada and airlines in the U.S. tend to be negatively impacted by positive movements in WTI. Equity returns of airlines in Canada and railways in the U.S show limited evidence of any impact. Additional estimations suggest that equity returns of airlines react asymmetrically and that information regarding oil price movements may gradually diffuse over time. With the changing North American energy landscape (e.g., oil sands and shale oil), the increased reliance on transporting crude oil via railways should lead academics and practitioners to further research in this area. Keywords: Transportation; Airlines; Railways; Oil; Equity returns; CAPM (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:52:y:2020:i:c:s1062940820300759 DOI: 10.1016/j.najef.2020.101178 Access Statistics for this article The North American Journal of Economics and Finance is currently edited by Hamid Beladi More articles in The North American Journal of Economics and Finance from Elsevier |
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