The Relationship Between Oil Price and Airline Stock Price

The Relationship Between Oil Price and Airline Stock Price

This study aims to examine the relationship between oil prices and airline stock prices. with the increase of threats of oil price fluctuations and rising energy price for airline companies, it is important to important to consider oil as a pricing factor in asset pricing models. Furthermore the stu...

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Main Author: Saleh, Mousa Sharaf Adin Hezam
Format: Thesis
Language:eng
eng
Published: 2012
Subjects:
HB Economic Theory
Online Access:https://etd.uum.edu.my/3550/1/s808861.pdf
https://etd.uum.edu.my/3550/7/s808861.pdf
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id my-uum-etd.3550
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Mohd Taib, Hasniza
topic HB Economic Theory
spellingShingle HB Economic Theory
Saleh, Mousa Sharaf Adin Hezam
The Relationship Between Oil Price and Airline Stock Price
description This study aims to examine the relationship between oil prices and airline stock prices. with the increase of threats of oil price fluctuations and rising energy price for airline companies, it is important to important to consider oil as a pricing factor in asset pricing models. Furthermore the study contributes to literature by demonstrating how the relationship between oil price and stock price vary among companies depending on their characteristics. Two multiple regression models are executed to investigate the nature of the relationship between oil price and airline stock price. The models consider crud oil denominated by daily OPEC basket prices, and the data for 40 airline companies from 27 countries. The findings suggest that there is a significant negative relationship between airline stock prices and both oil price and exchange rate. The findings also suggest that there is a significant positive relationship between firm size and profitability and the effect of oil prices, as well as there is a significant negative relationship between operating leverage and liquidity and the effect of oil price. Conversely, there is a negative relationship between financial leverage and the effect of oil price but not significant and as for the operating efficiency the finding show a positive relationship but not significant too.
format Thesis
qualification_name masters
qualification_level Master's degree
author Saleh, Mousa Sharaf Adin Hezam
author_facet Saleh, Mousa Sharaf Adin Hezam
author_sort Saleh, Mousa Sharaf Adin Hezam
title The Relationship Between Oil Price and Airline Stock Price
title_short The Relationship Between Oil Price and Airline Stock Price
title_full The Relationship Between Oil Price and Airline Stock Price
title_fullStr The Relationship Between Oil Price and Airline Stock Price
title_full_unstemmed The Relationship Between Oil Price and Airline Stock Price
title_sort relationship between oil price and airline stock price
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2012
url https://etd.uum.edu.my/3550/1/s808861.pdf
https://etd.uum.edu.my/3550/7/s808861.pdf
_version_ 1747827599505096704
spelling my-uum-etd.35502016-04-24T00:25:58Z The Relationship Between Oil Price and Airline Stock Price 2012-12 Saleh, Mousa Sharaf Adin Hezam Mohd Taib, Hasniza Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HB Economic Theory This study aims to examine the relationship between oil prices and airline stock prices. with the increase of threats of oil price fluctuations and rising energy price for airline companies, it is important to important to consider oil as a pricing factor in asset pricing models. Furthermore the study contributes to literature by demonstrating how the relationship between oil price and stock price vary among companies depending on their characteristics. Two multiple regression models are executed to investigate the nature of the relationship between oil price and airline stock price. The models consider crud oil denominated by daily OPEC basket prices, and the data for 40 airline companies from 27 countries. The findings suggest that there is a significant negative relationship between airline stock prices and both oil price and exchange rate. The findings also suggest that there is a significant positive relationship between firm size and profitability and the effect of oil prices, as well as there is a significant negative relationship between operating leverage and liquidity and the effect of oil price. Conversely, there is a negative relationship between financial leverage and the effect of oil price but not significant and as for the operating efficiency the finding show a positive relationship but not significant too. 2012-12 Thesis https://etd.uum.edu.my/3550/ https://etd.uum.edu.my/3550/1/s808861.pdf text eng validuser https://etd.uum.edu.my/3550/7/s808861.pdf text eng public masters masters Universiti Utara Malaysia Arouri, M.E.H., & Fouquau, J. (2009). On the short-term influence of oil price changes on stock markets in GCC countries: linear and nonlinear analyses. 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