THE IMPACT OF OIL PRICE SHOCKS ON THE EUROPEAN STOCK MARKET (1998-2008): A SECTOR ANALYSIS

摘要

Understanding the dynamics of stock prices is an issue of ongoing research in financial markets literature. In particular, identifying the factors that affect stock market returns is of the utmost relevance and importance to investors and policy makers. Although an abundance of theoretical and empirical works focused on asset pricing, there is no consensus about the nature and number of factors that affect stock prices. Furthermore, as the oil price has changed with sequences of very large increases and decreases over recent years, it is now quite opportune to augment the existing research on its impacts on stock market returns.