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

Author

Listed:
  • 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,)

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.

Suggested Citation

  • Henry Inegbedion & Eseosa Obadiaru & Olamide Adeyemi, 2020. "Stock Prices Reaction to Oil Price Fluctuations: Empirical Evidence from Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 142-149.
    • Handle: RePEc:eco:journ2:2020-05-18
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    References listed on IDEAS

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    Cited by:

    1. Henry Inegbedion & Bello Deva Vincent & Eseosa Obadiaru, 2020. "Risk Management and the Financial Performance of Banks in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 115-128, October.
    2. Henry Egbezien Inegbedion, 2023. "A Time Series Forecast of COVID-19 Infections, Recoveries and Fatalities in Nigeria," Sustainability, MDPI, vol. 15(9), pages 1-17, April.

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    More about this item

    Keywords

    Stock market returns; crude oil prices; oil price fluctuations; exchange rate; interest rate;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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