Oil Prices and Firm Returns in an Emerging Market

Esin Cakan (), Sercan Demiralay and Veysel Ulusoy
Additional contact information
Esin Cakan: University of New Haven

American Business Review, 2021, vol. 24, issue 1, 166-187

Abstract: This study examines the oil price effect on Turkish stock market as an emerging country on firm level data. After controlling short term interest rate, nominal exchange rate and crude oil price, we find that firms behave differently to a change in oil prices. The findings include these: i) variations in oil prices do not significantly affect Turkish firm returns. Out of 153, only 38 firms are affected significantly by oil price after controlling exchange rate and interest rate; ii) oil prices influence stock returns of Turkish firms, suggesting that under reaction and gradual information diffusion hypotheses may hold. iii) small and middle-sized firms are more affected negatively from oil price changes, where large-sized firms affected more positively. The empirical findings of this study have potential implications and offer significant insights for both practitioners and policy makers.

Keywords: Oil Prices; Emerging Markets; Firm Returns; Sectors; Herd Behavior (search for similar items in EconPapers)
JEL-codes: G14 G15 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://digitalcommons.newhaven.edu/cgi/viewconten ... ericanbusinessreview Full text (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:ris:ambsrv:0031

Access Statistics for this article

American Business Review is currently edited by Kamal Upadhyaya and Subroto Roy

More articles in American Business Review from Pompea College of Business, University of New Haven Contact information at EDIRC.
Bibliographic data for series maintained by Amber Montano ().