The Relationships between Crude Oil Prices, Financial Performances and Share Prices of Oil and Gas Producers

Liu, Ying Gui (2014) The Relationships between Crude Oil Prices, Financial Performances and Share Prices of Oil and Gas Producers. [Dissertation (University of Nottingham only)]

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Abstract

The paper investigates the relationships between crude oil prices, financial performances and

share prices of 233 studied oil and gas producers. Hamilton's (2003) study emphasized the

significant correlation between increases in crude oil prices and US recessions. Hamilton (2010)

also pointed out that almost all major economic downturns have been immediately preceded by

a significant rise in oil prices. This study collects and uses all of the 233 worldwide listed oil

and gas producers’ monthly, quarterly and yearly accounting (Book Value, Earnings Per Share

and Earnings Before Interest and Taxes) and stock market information that could be found in the

Datastream Advance database. This study has assessed and analyzed the impacts of crude oil

prices on both the studied firms’ financial performances and their share prices.

The empirical evidence suggested a significant positive correlation amongst crude oil prices and

the studied firms' stock market performances and their financial performances. A significant

and very strong correlation also exists between the studied firms' financial performances and their

stock market performances. This finding is aligned with that studied for the forward

relationship between crude oil prices and the stock market performances. An increase in crude

oil prices leads to a higher stock market revenues, and vice versa, a falling crude oil prices cause

a decrease in their market share values.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Library Services, UNMC
Date Deposited: 26 Dec 2014 11:31
Last Modified: 25 Oct 2016 04:37
URI: http://eprints.nottingham.ac.uk/id/eprint/28002

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