Oil Price Volatility and Stock Price Volatility: Evidence from Nigeria

Uwubanmwen, A.E.; Omorokunwa, O.G.

doi:10.5901/mjss.2015.v4n1p253

Cited by 8 publications

(8 citation statements)

References 16 publications

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“…The conflicts in results have left doubt which this study intends to investigate in an emerging market economy. While crude oil is considered universally as the life-wire of every nation, stock markets are generally regarded as an engine of economic growth (Uwubanmwen and Omorokunwa, 2015). Results of some empirical inquiries on the oil price movements and stock market connection are highlighted below.…”

Section: Literature Reviewmentioning

confidence: 99%

The Influence of Oil Price Fluctuations on Stock Market of Developing Economies: A Focus on Nigeria

NWUDE

Eluyela

Agbo

et al. 2021

IJEEP

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The inconclusiveness of findings from various studies on Nigeria on the effect of crude oil price fluctuation on the stock market has led to an argument in literature, thus necessitating further exploration of the subject. This study examines the effect of variations in the price of crude oil on selected stock market performance variables in Nigeria using monthly frequency data covering January 1997-December 2016. Variance decomposition, impulse response analysis, and VAR estimations were employed for the study. The results reveal that oil price variations are slowly transmitted in some stock market performance variables. The findings indicate that the effect of crude oil price fluctuations in the Nigerian stock market is greatly minimized and does not sufficiently account for market activities.

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Section: Literature Reviewmentioning

confidence: 99%

The Influence of Oil Price Fluctuations on Stock Market of Developing Economies: A Focus on Nigeria

NWUDE

Eluyela

Agbo

et al. 2021

IJEEP

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“…(2018) ; macroeconomic factors as in Ali et al. (2015) , Uwubanmwen and Omorokunwa (2015) , Lawal et al. (2016) , Iheanacho (2016) , Mroua and Trabelsi (2019) , and Manasseh et al.…”

Section: Empirical Literaturementioning

confidence: 99%

“…Many studies have focused on the linkages stock prices have with local factors, including political factors like election announcements as contained in Osamwonyi andOmorounwa (2017), Osual et al (2018); macroeconomic factors as in Ali et al (2015), Uwubanmwen and Omorokunwa (2015), Lawal et al (2016), Iheanacho (2016), Mroua andTrabelsi (2019), andManasseh et al (2019). Anaraki (2010) examined the relationship between the US Fed policies, financial crisis and the European equity market.…”

Section: Empirical Literaturementioning

confidence: 99%

Dynamic links between the Nigerian equity market and those of selected regional and developed countries

Obadiaru

Obasaju

Omankhanlen

et al. 2020

Heliyon

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The dynamic and growing interdependent nature of equity markets across the world has elicited the interest of investors and researchers alike. This study examines the dynamic interactions between the Nigerian stock market and selected regional and global equity markets spanning eight years, from 2011 to 2018, using daily index data. The generalised impulse response function was used alongside the Toda and Yamamoto Granger causality test to investigate the short-run dynamic linkages, while the normalized Johansen vector error correction estimates served to assess the long-run linkages given the existence of cointegration. Findings from the study revealed that the UK and the Ghanaian stock markets exert significant long-run impact on the Nigerian stock market, while vagaries from the US tend to exert more influence on the Nigerian stock market in the short-run. The study recommends that more regional efforts are needed to enhance the integration of stock markets in West Africa. The findings have implications for national and regional policymakers as well as portfolio investors.

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“…Guesmi and Boubaker (2016) suggested that the effect of oil price shocks on the stock market varies depending oil the reality of time but have evident long run convergence. Though Ojikutu et al (2017) reported insignificant impact of oil price on the stock market for Nigeria, Gil-Alana and Yaya (2014), Ogiri et al (2013) and Uwubanmwen and Omorokunwa (2015) emphasized the dominance of oil price in affecting the stock market as Olayeni and Olofin (2015) reiterated the extreme risk exposure of the stock price to oil price shocks. Akinlo (2014) showed, with impulse response that oil price has a temporary positive impact on stock-index.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Performance in Nigeria: The Effect of Oil Price and Exchange Rate Fluctuations

Omoregie

Olofin

2020

IJEFI

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Discussions on the separate effect of oil price and exchange rate fluctuations on economic activity and corporate performance in Nigeria are inconclusive. This study investigates the simultaneous influence of oil price and exchange rate and the impact of the different exchange rate regimes adopted in Nigeria on corporate performance, using the structural vector autoregressive/historical decomposition framework. The literature in these areas is sparse. Result from this study suggests that oil price shocks have negative influence on corporate performance with a very short-term positive influence. Exchange rate shocks have positive impact on corporate performance with an instantaneous negative effect. Also, fixed exchange regimes are associated with a downturn in corporate performance, while flexible regimes are associated with improved corporate performance. This result support diversification and flexible exchange rate policies, while corporate managers should adopt risk-hedging strategies to cushion the adverse combined effect of oil price and exchange rate shocks.

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Oil Price Volatility and Stock Price Volatility: Evidence from Nigeria

Abstract: Abstract

Cited by 8 publications

References 16 publications

The Influence of Oil Price Fluctuations on Stock Market of Developing Economies: A Focus on Nigeria

The Influence of Oil Price Fluctuations on Stock Market of Developing Economies: A Focus on Nigeria

Dynamic links between the Nigerian equity market and those of selected regional and developed countries

Corporate Performance in Nigeria: The Effect of Oil Price and Exchange Rate Fluctuations

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