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

Authors

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.

Keywords: Stock market returns; crude oil prices; oil price fluctuations; exchange rate; interest rate

JEL Classification: H25

DOI: https://doi.org/10.32479/ijeep.8306

Downloads

Download data is not yet available.

Author Biography

Henry Inegbedion, Landmark University, Omu Aran Nigeria

Department of Business StudiesCollege of Business and Social Sciences

Downloads

Published

2020-08-10

How to Cite

Inegbedion, H., Obadiaru, E., & Adeyemi, O. (2020). Stock Prices Reaction to Oil Price Fluctuations: Empirical Evidence from Nigeria. International Journal of Energy Economics and Policy, 10(5), 142–149. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/8306

Issue

Section

Articles

Most read articles by the same author(s)