Stock market reactions to different types of oil shocks: Evidence from China

Wong, Jin Boon

doi:10.1002/fut.22176

Cited by 24 publications

(13 citation statements)

References 32 publications

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“…First, business and management research on shocks in Asia predominantly dealt with shocks based on human actions. Among these, much attention is directed to the consequences of regulatory shocks (Huang et al, 2021 ; Zhang et al, 2021 a, 2021b ; Zheng & Wang, 2020 ), market-based shortages or price increases of raw materials (Wong, 2021 ) and financial crises (Marino et al, 2008 ) to organisations and how they manage their business. This is noteworthy as Asian countries, and especially the prominent economic players like China, India and Japan, are prone to different large-scale natural disasters like tropical storms and earthquakes, given their geographical location.…”

Section: Research On Shocks In Asiamentioning

confidence: 99%

Thrown off track? Adjustments of Asian business to shock events

2021

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The need for a better understanding of radical uncertainty might have never been greater. Ill-preparedness for natural hazards, a resurgence of serious public health concerns or illusions of control over unruly technology question the extent to which we can ‘really’ shape the world around us. Human-made crises, too, test how we routinely do things. We ask how organisations and actors within them prepare for a collapse of meaning and practise radical uncertainty. Given the breadth and depth of the region’s energy (and, as some would argue, turbulences), Asia provides a fitting context for exploring accommodation to and learning from low-probability, high-impact incidents. By reviewing the business and management research on shocks in Asia, we find that there is a strong human side to dealing with the unknown. We argue that what organisations and actors within them do prior, during and after a shock event is substantially contingent upon cultural environments. To elaborate, we discuss the role of the uncertainty avoidance dimension of national culture in dealing with shock events. We further combine this dimension with the universalism-particularism dimension to discuss future research directions. Our exploration of resultant differences in preparedness, resourcefulness and learning offers a more rounded inquiry into how Asian business actors deal with shocks.

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Section: Research On Shocks In Asiamentioning

confidence: 99%

Thrown off track? Adjustments of Asian business to shock events

2021

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“…The risk spillover between the international crude oil market and financial market in different return trends is mainly due to the transmission of information and investor behaviors in these two markets, determined by differences in investor risk preference Chkir et al, 2020;Wong, 2020).…”

Section: Hypothesesmentioning

confidence: 99%

Asymmetric Risk Spillover of the International Crude Oil Market in the Perspective of Crude Oil Dual Attributes

Jia

Dong²,

Yang

2021

Front. Environ. Sci.

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The heterogeneity of investor sentiment plays a key role in causing the asymmetry of information transmission patterns and transmission intensity between markets. This paper analyzes the asymmetric risk spillover between the international crude oil market and other markets, including commodity market and financial market, using monthly data from June 2006 to October 2020. The risk from the international crude oil market is separated into upside and downside risks. The empirical results suggest that, first, from the perspective of static spillover, the risk spillover between the international oil market and commodity market or financial market enhances significantly in response to rising return; second, from the perspective of dynamic spillover, the asymmetric risk spillover of international crude oil market manifests the key roles played by important events happening in the crude oil market and alternating attributes of crude oil. Some policy suggestions are proposed in light of these empirical results.

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“…Earlier studies often suggest a negative relationship by observing that high oil prices typically lead to stock price crashes (Sim & Zhou, 2015). However, empirical studies have also found a positive relationship (Mensi et al, 2017) and a contingent relationship depending on the cause of oil price shock (Mokni, 2020; Wong, 2021) and market status (Alquist et al, 2020). These mixed and contradictory results are at least partially due to the weakness of financial contagion detection methods used in the literature.…”

Section: Introductionmentioning

confidence: 99%

The dynamics of cross‐boundary fire—Financial contagion between the oil and stock markets

Wang

2021

Journal of Futures Markets

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Motivated by the complex dynamics between the oil and stock markets, this study develops a dynamic Markov regime switching‐copula‐extreme value theory model to quantitatively investigate financial contagion and its characteristics between these two markets. The proposed model is applied to daily returns on crude oil prices and the stock markets in the United States and China over six major extreme downside risk events. We find that financial contagion is shorter, stronger, and more susceptible to extreme downside shocks in the United States than in China. In addition, the COVID‐19 crisis shows the largest financial contagion compared with previous crises.

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Stock market reactions to different types of oil shocks: Evidence from China

Cited by 24 publications

References 32 publications

Thrown off track? Adjustments of Asian business to shock events

Thrown off track? Adjustments of Asian business to shock events

Asymmetric Risk Spillover of the International Crude Oil Market in the Perspective of Crude Oil Dual Attributes

The dynamics of cross‐boundary fire—Financial contagion between the oil and stock markets

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