The Impacts of Oil Price and Exchange Rate on Vietnamese Stock Market

Nguyen, Tra; Nguyen, Dat Thanh; Nguyen, Vu Ngoc

doi:10.13106/jafeb.2020.vol7.no8.143

Cited by 20 publications

(29 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This follows with an increase in the productivity and lowering of unemployment. These results are coinciding with some of the prior works (Nguyen et al, 2020;Oskooe, 2011), accordingly the study can reject the fourth hypothesis (see Table 4).…”

Section: Regression Modelsupporting

confidence: 90%

“…Another study found that the rise of Brent crude as a measure of oil prices leads to higher return on Norwegian shares, and that the Norwegian economy responds to oil price rises by increasing total wealth and demand using the VAR model on monthly data for the stability period of the Norwegian monetary system (1993)(1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005) (Bjornland, 2009). Another study concluded that some of Gulf countries stock markets (Qatar, Oman, UAE) are positively affected by oil prices using daily observations for the year (2005), also study in Vietnam showed the positive effect of tow oil price indices Brent and west Texas Intermediate on the two stock market indices using the daily observation for the period (2000-2019) (Nguyen et al, 2020), these results confirmed the negative significant effect of oil price with Iraq stock exchange for the period (2005-2018) (Mustafa, 2020).…”

Section: Oil Price and Stock Marketmentioning

confidence: 97%

“…The oil price measures the crude oil price per barrel using West Texas Intermediate (WTI) as proxy for oil price in the study. This measurement is used by many of the previous studies (Nguyen et al, 2020) and the measurement is correlated strongly with other measurements such as Brent or OPEC. Iraq is a principal member in oil petroleum exporting countries (OPEC), so the oil price plays an essential role in the exporting country and any increase in the oil prices will lead to an increase in the economic growth to become very good tools that explains any change in stock market.…”

Section: Variable Definitions and Data Sourcesmentioning

confidence: 97%

“…Iraq is still considered a country which is at high levels of political risk in international classifications by institutions which are specialized in risk assessment for the study period ranging (2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018). This means that the impact of the & Gazdar, 2010; Girma & Shorland, 2008;Gunay, 2016;Modugu & Dempere, 2020;Moussa & Talbi, 2019;Yartey, 2008;Zaiane, 2018) or oil price (Berk & Aydogan, 2012;Bjornland, 2009;Creti, Ftiti & Guesmi, 2013;Eryigit, 2009;Hammoudeh & Li, 2005;Marane, 2015;Nguyen, Nguyen & Nguyen, 2020;Oskooe, 2011) on the development of stock market. However, these results are still inconsistent and non-consensus.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Corruption, Terrorism and the Stock Market: The Evidence from Iraq

Asaad¹,

Marane²

2020

JAFEB

View full text Add to dashboard Cite

The current study explains how corruption, terrorism, political stability and oil price has an effect on on the Iraq stock exchange utilizing corruption perception index as a proxy of corruption, global terrorism index as proxy for terrorism, political stability and oil price with ISX60 index as proxy of stock market for the period (2005-2019) using Ordinary Least Square method. The results show that the level of corruption, terrorism activities and political stability coefficient is significantly positive with Iraq stock exchange. In contrast, the oil price coefficient is significantly negative with Iraq stock exchange, which means that lower levels of corruption, less terrorism activities and more stability in political system have strong influence on stock market development in Iraq. The study concludes that the explanatory variables are important for Iraq stock exchange. Hence, the study suggests the policy makers to develop stock market by implementing policies and strategies to overcome high level of corruption, terrorism activities especially after ISIS/ISIL announcement has been made public. There is a need for transparency and creating stable political environment through good governance practices in order to attract more foreign investment and promote economic development. Factors like terrorism and corruption make economic and political systems unstable and has an adverse effect on on Iraq's stock exchange performance.

show abstract

Section: Regression Modelsupporting

confidence: 90%

Section: Oil Price and Stock Marketmentioning

confidence: 97%

Section: Variable Definitions and Data Sourcesmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corruption, Terrorism and the Stock Market: The Evidence from Iraq

Asaad¹,

Marane²

2020

JAFEB

View full text Add to dashboard Cite

show abstract

“…The exchange rate is the value relationship between a unit of domestic currency and the foreign currency or the value of a country's currency against the currencies of other countries used in trade transactions, where the value of the currency is influenced by the supply and demand for the currency of the country concerned (Artha, 2014). Nguyen, Nguyen and Nguyen (2020) showed that exchange rate has no consistent effect on stock market. Yusfiarto and Pambekti (2020b), Suyati (2016), Indriastuti and Nafiah (2017) found that the exchange rate has a negative effect on Islamic stock returns.…”

Section: Macroeconomics Against Sharia Stock Returnsmentioning

confidence: 99%

Financial Ratio, Macro Economy, and Investment Risk on Sharia Stock Return

Widagdo¹,

Jihadi²,

Bachitar³

et al. 2020

JAFEB

View full text Add to dashboard Cite

The purpose of this study is to analyze and test the effect of financial ratios and macroeconomics on Islamic stock returns listed in Jakarta Islamic Index (JII) other than to assess whether investment risk can be an intervening variable in this study. The type of research is explanatory in nature with a quantitative descriptive approach. The data used is based on secondary sources with a sample group of 29 companies listed on JII for a 5-year period ending 31 December 2018. The data obtained were analyzed by using SEM (Structural Equation Model) with AMOS (Analysis Moment of Structural) 21 program. The results of the study show that only financial ratios affect sharia stock returns and investment risk, while the mediation test found that investment risk does not act as a mediating variable between financial ratios and macroeconomics and Islamic stock return. These findings indicate that the role of the company's financial health is very important. Besides affecting the rate of return obtained, the company's financial health can also reflect the level of risk that investors will accept in the future. By improving financial performance properly, a company will have a positive impact on various interested parties and minimize the level of investor losses.

show abstract