Coal Sector Returns and Oil Prices: Developed and Emerging Countries
This paper examines the effect of oil price on coal sector stock returns. A multifactor market model is used to estimate the expected excess returns to the coal sector. A 1% increase in oil price return has a statistically significant positive impact on coal sector returns of between 0.06% and 0.20%...
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doaj-855fdbf08bf84db28874e1a53601eac62020-11-25T02:02:26ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532015-06-01525155241032Coal Sector Returns and Oil Prices: Developed and Emerging CountriesMohammad Z. HasanRonald A. RattiThis paper examines the effect of oil price on coal sector stock returns. A multifactor market model is used to estimate the expected excess returns to the coal sector. A 1% increase in oil price return has a statistically significant positive impact on coal sector returns of between 0.06% and 0.20%. A 1% increase in coal price raises the return of coal sector returns by between 0.22% and 0.30%. Increased volatility in oil price return significantly reduces coal sector return. Participants in energy markets may perceive oil price as being determined globally and as providing information on demand for energy overall. Understanding the variables that affect the behaviour of the stock prices in the coal is of importance to market participants and policy makers, and is helpful in developing efficient hedging policies to deal with changes in energy priceshttps://dergipark.org.tr/tr/pub/ijeeep/issue/31913/350907?publisher=http-www-cag-edu-tr-ilhan-ozturkcoal sector return oil price coal price |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Mohammad Z. Hasan Ronald A. Ratti |
spellingShingle |
Mohammad Z. Hasan Ronald A. Ratti Coal Sector Returns and Oil Prices: Developed and Emerging Countries International Journal of Energy Economics and Policy coal sector return oil price coal price |
author_facet |
Mohammad Z. Hasan Ronald A. Ratti |
author_sort |
Mohammad Z. Hasan |
title |
Coal Sector Returns and Oil Prices: Developed and Emerging Countries |
title_short |
Coal Sector Returns and Oil Prices: Developed and Emerging Countries |
title_full |
Coal Sector Returns and Oil Prices: Developed and Emerging Countries |
title_fullStr |
Coal Sector Returns and Oil Prices: Developed and Emerging Countries |
title_full_unstemmed |
Coal Sector Returns and Oil Prices: Developed and Emerging Countries |
title_sort |
coal sector returns and oil prices: developed and emerging countries |
publisher |
EconJournals |
series |
International Journal of Energy Economics and Policy |
issn |
2146-4553 |
publishDate |
2015-06-01 |
description |
This paper examines the effect of oil price on coal sector stock returns. A multifactor market model is used to estimate the expected excess returns to the coal sector. A 1% increase in oil price return has a statistically significant positive impact on coal sector returns of between 0.06% and 0.20%. A 1% increase in coal price raises the return of coal sector returns by between 0.22% and 0.30%. Increased volatility in oil price return significantly reduces coal sector return. Participants in energy markets may perceive oil price as being determined globally and as providing information on demand for energy overall. Understanding the variables that affect the behaviour of the stock prices in the coal is of importance to market participants and policy makers, and is helpful in developing efficient hedging policies to deal with changes in energy prices |
topic |
coal sector return oil price coal price |
url |
https://dergipark.org.tr/tr/pub/ijeeep/issue/31913/350907?publisher=http-www-cag-edu-tr-ilhan-ozturk |
work_keys_str_mv |
AT mohammadzhasan coalsectorreturnsandoilpricesdevelopedandemergingcountries AT ronaldaratti coalsectorreturnsandoilpricesdevelopedandemergingcountries |
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1724953048664506368 |