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Shavvalpour, S., Khanjarpanah, H., Zamani, F., Jabbarzadeh, A. (2017). Petrochemical Products Market and Stock Market Returns: Empirical Evidence from Tehran Stock Exchange. Iranian Economic Review, 21(2), 383-403. doi: 10.22059/ier.2017.62109
Saeed Shavvalpour; Hossein Khanjarpanah; Farhad Zamani; Armin Jabbarzadeh. "Petrochemical Products Market and Stock Market Returns: Empirical Evidence from Tehran Stock Exchange". Iranian Economic Review, 21, 2, 2017, 383-403. doi: 10.22059/ier.2017.62109
Shavvalpour, S., Khanjarpanah, H., Zamani, F., Jabbarzadeh, A. (2017). 'Petrochemical Products Market and Stock Market Returns: Empirical Evidence from Tehran Stock Exchange', Iranian Economic Review, 21(2), pp. 383-403. doi: 10.22059/ier.2017.62109
Shavvalpour, S., Khanjarpanah, H., Zamani, F., Jabbarzadeh, A. Petrochemical Products Market and Stock Market Returns: Empirical Evidence from Tehran Stock Exchange. Iranian Economic Review, 2017; 21(2): 383-403. doi: 10.22059/ier.2017.62109

Petrochemical Products Market and Stock Market Returns: Empirical Evidence from Tehran Stock Exchange

Article 10, Volume 21, Issue 2, Spring 2017, Page 383-403  XML PDF (883.38 K)
DOI: 10.22059/ier.2017.62109
Authors
Saeed Shavvalpour email 1; Hossein Khanjarpanah2; Farhad Zamani3; Armin Jabbarzadeh2
1School of Progress Engineering, Iran University of Science and Technology
2School of Industrial Engineering, Iran University of Science and Technology, Tehran
3School of Progress Engineering, Iran University of Science and Technology, Tehran
Abstract
While the relationship between stock market return and oil price is of great interest to researchers, previous studies do not investigate stock market return with petrochemical products market. In this paper, we analyzed the relationship between prices of main petrochemical products and stock returns of petrochemical companies in Tehran stock exchange. Using a panel data model and GLS estimation method, we investigated the effect of methanol, propane, and urea prices along with financial variables on stock returns of six big petrochemical companies during 2001 to 2013. Results show that although changes in prices of petrochemical products have direct effect on stock returns of all petrochemical companies, this effect is much higher for smaller companies.
Keywords
Keywords: Petrochemical Products; Stock market; panel data; Tehran Stock Exchange; GLS Estimation. JEL Classification: B26; C01; C23; C58; D53
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