Effect of crude oil on the Prague Stock Exchange
| Authors | |
|---|---|
| Year of publication | 2014 |
| Type | Article in Proceedings |
| Conference | 2ND WORLD CONFERENCE ON BUSINESS, ECONOMICS AND MANAGEMENT |
| MU Faculty or unit | |
| Citation | |
| Doi | http://dx.doi.org/10.1016/j.sbspro.2013.12.631 |
| Field | Economy |
| Keywords | Oil price; stock return; exchange rate; systematic rate |
| Description | The aim of this paper is to analyze the impact of the development of crude oil prices on the Prague Stock Exchange and on its Blue Chips. It would be logical to expect that crude oil as an important production factor will have a significant impact on the economy and figuratively on the capital markets. Intuitively, it might be assumed that if the production costs rise, there will be an overall deterioration of the financial situation of a particular company with a subsequent drop in its share price and vice versa. This fact, in our research is not clearly given. It is evident the need to differentiate in which sector the company is operating. The results of our research have been certainly influenced by the nature of the Prague Stock Exchange. Although the Czech Republic is one of the EU-members, the different institutional environment of the country should be taken into account, because in the nineties the Czech Republic was one of the transition economies. Finally, for the results of the analysis it is necessary to consider the impact of the exchange rate. (C) The Authors. Published by Elsevier Ltd. |
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