Relationship between crude oil prices and stock prices of alternative energy companies with recent evidence

Yi-Hou Huang*, Chiao Ming Cheng, Wen Cheng Hu, Chih Chun Chen

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

This paper examines the recent interactive relationships between crude oil prices and stock performances of alternative energy companies. Oil prices and stock index of alternative energy sector are found independent from each other before late 2006. Contrary to existing studies, however, we find significant interdependence between oil prices and stock index of alternative energy industry in the recent years. Since late 2006, oil prices become significantly responsible for the stock performances of alternative energy companies. This finding suggests that the stock market investors of alternative energy sector incorporate oil price shocks into their trading decisions only recently.

Original languageEnglish
Pages (from-to)2434-2443
Number of pages10
JournalEconomics Bulletin
Volume31
Issue number3
StatePublished - 1 Sep 2011

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