Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303890 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 10 [Issue:] 1 [Article No.:] 2154311 [Year:] 2022 [Pages:] 1-16
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Overdependence on oil revenue has exposed the economy to shocks from oil price variations. In this paper, we investigated the relationship between oil price on the stock prices of oil and gas firms quoted in the Nigerian Stock Exchange market. In doing so, the ARDL and NARDL approach is applied to estimate quarterly data from 2009q1 to 2016q3. The result from the study showed that negative and positive oil price shocks have a positive long-run influence on stock prices (oil & gas). The evidence further showed that the long-run and short-run impact of an oil price increase on the oil and gas stock price index is similar to that of an oil price decrease. The oil and gas stock price responds positively to oil price shocks in the long run. Therefore, the portfolio managers, potential investors and policymakers in the oil-exporting countries should diversify investments to reduce exposure to risk and uncertainty that may arise to disruptions in the demand and supply for oil and gas or during periods of declining oil prices induced by negative global economic events.
Subjects: 
Diversification
Energy
NARDL
oil & gas
Portfolio
stock price
JEL: 
C22
E37
G17
Q43
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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