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The effect of oil price changes on the price of Russian and Chinese oil shares

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  • Stephen G. Hall

    (University of Leicester)

  • Amangeldi Kenjegaliev

    (Hull University Business School)

Abstract

Do changes in oil prices have an effect on stocks of oil companies in emerging markets? Do the shares of oil companies in emerging markets react to the price news in a similar way as those of the Western companies? This paper aims to answer these questions utilizing event study techniques. As expected, the results of both parametric and nonparametric tests suggest that the fluctuations in oil prices have an effect on the stock prices. However, an interesting result is that the responses of stocks of Chinese and Russian oil companies are considerably different from the shares of their Western counterparts.

Suggested Citation

  • Stephen G. Hall & Amangeldi Kenjegaliev, 2017. "The effect of oil price changes on the price of Russian and Chinese oil shares," Empirical Economics, Springer, vol. 53(4), pages 1639-1656, December.
    • Handle: RePEc:spr:empeco:v:53:y:2017:i:4:d:10.1007_s00181-016-1176-3
    DOI: 10.1007/s00181-016-1176-3
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    1. Kenjegaliev, Amangeldi & Duygun, Meryem & Mamedshakhova, Djamila, 2016. "Do rating grades convey important information: German evidence?," Economic Modelling, Elsevier, vol. 53(C), pages 334-344.

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