What do we know about oil prices and stock returns

By Russell Smyth *, Paresh Kumar Narayan. 2018

248 citations recorded by the source corpus.

This paper is a survey of research on how oil prices affect stock returns. In the last couple of decades there has been an upsurge in such research, suggesting that a stock take is timely. The sheer volume of research on the interaction between oil markets and stock markets has meant that we have lost track of the key findings from the literature. The danger, in the absence of a stock take, is that we will produce a large volume of studies on how oil prices interact with stock returns without them having any real impact on the profession. This paper is a response to this concern. It highlights the key themes researched, main findings and, equally importantly, identifies key challenges and suggests an agenda for future research on the interaction between oil prices and stock returns and oil prices and the financial sector more generally.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/3d4bfb5165a13ff44de6c2bd5cdc003eccc1b575

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Sikiru Abidemi Abdulsalam
2. Afees A. Salisu
3. G. Ebuh
4. N. Usman

In Renewable Energy, Sustainability and the Environment

1. Afees A. Salisu
2. Sikiru Abidemi Abdulsalam

Citations in the corpus

• Revisiting oil-stock nexus during COVID-19 pandemic: Some preliminary results (2020, background): “For instance, Albulescu (2020) and Zhang et al. (2020) contend that globalfinancial market risks have increased substantially in response to the pandemic, withfinancial markets becoming highly volatile and unpredictable.”
• Pandemics and the Asia-Pacific Islamic Stocks (2020, methodology): “We also control for an additional predictor, oil price (using the West Texas Intermediate crude oil price3), given evidence of its strong connection with the stock market (Salisu et al., 2019, among others; see Smyth & Narayan, 2018).”