The Impact of International Oil Prices on the Return of the Market Portfolio - A Study of the Iraq Stock Exchange for the Period 2012-2019

Purpose US sanctions have been a major feature of US Iran policy since Iran’s 1979 Islamic revolution, but the imposition of UN and worldwide bilateral sanctions on Iran that began in 2006 and increased dramatically as of 2010 is recent by comparison. The objectives of US sanctions have evolved over time. Broad international sanctions imposed on Iran harmed Iran’s economy and contributed to Iran’s acceptance of agreements that exchange constraints on its nuclear program for sanctions relief. The subject of this study is important because both Iran and the international communities are demanding for information about the effect of sanctions on Iran. In an international and regional perspective, it seems that sanctions have a negative impact on economic, social and even political status of Iran. Therefore, this paper aims to examine the impact of Iran Central Bank sanction on Tehran Stock Exchange as on December 31, 2011. Design/methodology/approach Variables of model are consisted by exchange rate, oil prices and Tehran Stock Exchange Price Index (TEPIX) from October 2, 2011 to March 29, 2012, which is offered daily. To analyze the model, the authors used Johansen–Juselius and Autoregressive Distributed Lag (ARDL) methods. Findings The results indicate that there is a long-run equilibrium relationship between selected variables as oil prices, and exchange rates have a positive effect on the TEPIX. In other words, the results of the econometric estimation show the positive effect of the Iran Central Bank sanction on the TEPIX. Thus, because of economic sanctions imposed by the Western countries, Tehran Stock Exchange has been growing. Originality/value No empirical research exists that examines the impact of sanctions on stock price in developing countries. This study fills this gap by examining the links between sanctions and stock price in Iran.

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Impact of gold and oil prices on the stock market in Pakistan

Journal of Economics Finance and Administrative Science ◽

10.1108/jefas-04-2019-0053 ◽

2020 ◽

Vol 25 (50) ◽

pp. 279-294

Author(s):

Aiza Shabbir ◽

Shazia Kousar ◽

Syeda Azra Batool

Keyword(s):

Stock Market ◽

Stock Returns ◽

Stock Exchange ◽

Structural Break ◽

Oil Prices ◽

Current Data ◽

Small Sample ◽

Data Set ◽

Content Type ◽

The Impact

Purpose The purpose of the study is to find out the impact of gold and oil prices on the stock market. Design/methodology/approach This study uses the data on gold prices, stock exchange and oil prices for the period 1991–2016. This study applied descriptive statistics, augmented Dickey–Fuller test, correlation and autoregressive distributed lag test. Findings The data analysis results showed that gold and oil prices have a significant impact on the stock market. Research limitations/implications Following empirical evidence of this study, the authors recommend that investors should invest in gold because the main reason is that hike in inflation reduces the real value of money, and people seek to invest in alternative investment avenues like gold to preserve the value of their assets and earn additional returns. This suggests that investment in gold can be used as a tool to decline inflation pressure to a sustainable level. This study was restricted to use small sample data owing to the availability of data from 1991 to 2017 and could not use structural break unit root tests with two structural break and structural break cointegration approach, as these tests require high-frequency data set. Originality/value This study provides information to the investors who want to get the benefit of diversification by investing in gold, oil and stock market. In the current era, gold prices and oil prices are fluctuating day by day, and investors think that stock returns may or may not be affected by these fluctuations. This study is unique because it focusses on current issues and takes the current data in this research to help investment institutions or portfolio managers.

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The Impact of Macroeconomic Variables on Stock Prices in Kuwait

International Journal of Business and Management ◽

10.5539/ijbm.v14n6p99 ◽

2019 ◽

Vol 14 (6) ◽

pp. 99 ◽

Cited By ~ 1

Author(s):

Ahmad M. Al-Kandari ◽

Sadeq J. Abul

Keyword(s):

Stock Prices ◽

Stock Exchange ◽

Oil Prices ◽

Macroeconomic Factors ◽

Macroeconomic Variables ◽

Dynamic Relationship ◽

Long Run ◽

Short Run ◽

Johansen Cointegration Test ◽

The Impact

The Kuwaiti Stock Exchange was established in April 1977 and is among the oldest stock exchanges in the GCC countries. This study aims to add new evidence about the impact of macroeconomic factors on the Kuwaiti Stock Exchange. It examines empirically the dynamic relationship between the Kuwaiti Stock Exchange Index and the main macroeconomic variables. These variables included M2, the three-month deposit interest rate, oil prices, the US Dollar vs Kuwaiti Dinar exchange rate and the inflation rate. By applying the Johansen cointegration test, together with the Var Error Correction Model (VECM), the study found that there a long-run unidirectional relationship exists between the Kuwaiti Stock Exchange Index and the aforementioned macroeconomic variables. This study also confirmed the existence of a short-run relationship between oil prices and stock prices in Kuwait.

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OIL PRICES MOVEMENTS AND INDUSTRY STOCK RETURNS: EVIDENCE FROM PAKISTAN STOCK EXCHANGE (PSX)

December 2020 - Gomal University Journal of Research ◽

10.51380/gujr-37-01-08 ◽

2021 ◽

Vol 37 (01) ◽

pp. 84-96

Author(s):

Muhammad Asif ◽

Sharif Ullah Jan ◽

Shahid Iqbal

Keyword(s):

Stock Returns ◽

Stock Exchange ◽

Oil Prices ◽

Oil Price ◽

Price Movement ◽

Future Studies ◽

Listed Firms ◽

Economic Recessions ◽

The Impact ◽

The Relationship

The recent financial and economic recessions have chiefly increased the importance of risk management and forecasting for business firms. Capital markets being the main pillar of economy are affected the most in such circumstances. The current study has attempted to investigate the impact of oil prices on the returns and volatility of Pakistani listed firms using the GARCH (1,1) model. Furthermore, this relationship has been investigated by categorizing the existing sectors of the Pakistan Stock Exchange (PSX) into oil producers, oil users, and oil substitutes for the period from January 2015 to December 2019. The findings of the study highlighted some strong evidence regarding the oil price movement and the firms’ returns across these sectors. Interestingly, firms’ returns behave differently about the magnitude of significance and direction of symbols based on their nature of the industry. Therefore, it is suggested for future studies to consider the nature of the sector of oil while exploring the relationship between oil prices and stock returns.

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Monetary policy and the effect of the transfer of oil prices to inflation

Voprosy Ekonomiki ◽

10.32609/0042-8736-2020-8-41-50 ◽

2020 ◽

pp. 41-50

Author(s):

Ph. S. Kartaev ◽

I. D. Medvedev

Keyword(s):

Monetary Policy ◽

Inflation Targeting ◽

Dynamic Models ◽

Oil Prices ◽

Oil Price ◽

Oil Price Shocks ◽

Negative Effects ◽

Price Shocks ◽

Policy Regime ◽

The Impact

The paper examines the impact of oil price shocks on inflation, as well as the impact of the choice of the monetary policy regime on the strength of this influence. We used dynamic models on panel data for the countries of the world for the period from 2000 to 2017. It is shown that mainly the impact of changes in oil prices on inflation is carried out through the channel of exchange rate. The paper demonstrates the influence of the transition to inflation targeting on the nature of the relationship between oil price shocks and inflation. This effect is asymmetrical: during periods of rising oil prices, inflation targeting reduces the effect of the transfer of oil prices, limiting negative effects of shock. During periods of decline in oil prices, this monetary policy regime, in contrast, contributes to a stronger transfer, helping to reduce inflation.

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Russia’s fiscal stimulus and fiscal sustainability

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-10-90-108 ◽

2013 ◽

pp. 90-108 ◽

Cited By ~ 2

Author(s):

N. Akindinova ◽

N. Kondrashov ◽

A. Cherniavsky

Keyword(s):

Government Spending ◽

Public Expenditure ◽

Oil Prices ◽

Fiscal Sustainability ◽

Macroeconomic Model ◽

Sharp Drop ◽

Fiscal Stimulus ◽

Fiscal Multipliers ◽

Russian Economy ◽

The Impact

This study examines the impact of public expenditure on economic growth in Russia. Fiscal multipliers for various items of government spending are calculated by means of our macroeconomic model of the Russian economy. Resources for fiscal stimulus and optimization are analyzed. In this study we assess Russia’s fiscal sustainability in conditions of various levels of oil prices. We conclude that fiscal stimulus is ineffective in Russia, while fiscal sustainability in conditions of a sharp drop in oil prices is relatively low.

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Mediating Effect of Organizational Commitment Between Islamic Human Resource Practices and Organizational Performance Among Islamic Banks of Bangladesh

The Journal of Muamalat and Islamic Finance Research ◽

10.33102/jmifr.v15i2.177 ◽

2018 ◽

Vol 15 (2) ◽

pp. 54-65

Author(s):

Bablu Kumar Dhar ◽

Rosnia Masruki ◽

Mahazan Mutalib ◽

Hatem Mohammed Rahouma ◽

Farid A. Sobhani ◽

...

Keyword(s):

Organizational Commitment ◽

Organizational Performance ◽

Human Resource ◽

Structural Equation ◽

Stock Exchange ◽

Reliability And Validity ◽

Mediating Effect ◽

Islamic Banks ◽

Hr Practices ◽

The Impact

This paper aims at exploring the impact of Islamic human resource (HR) practices on organizational performance though organizational commitment. Data were collected from randomly selected 170 branch managers of six Islamic Banks listed on Dhaka Stock Exchange of Bangladesh. After collecting data, descriptive analysis and structural equation model were done to examine reliability and validity of the model. By analysis, the study finds that Islamic HR practices have more significant impact on organizational performance though organizational commitment rather than the direct effect of Islamic HR practices to organizational performance. The findings of the study advocate that Islamic banks should emphasize more on Islamic HR practices and organizational commitment to uphold their organizational performance.

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