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The impact of the OPEC announcement on the oil companies' share prices
Purpose: This study aims at verifying the negative impact of the announcement made by OPEC to maintain oil production - on March 5, 2020 - on the oil companies´ share prices in the main countries of Latin America and the BRIC´s.Design/methodology/approach: Such objective is verified through an event...
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Published in: | Revista de administração da UFSM 2021-12, Vol.14 (4), p.932-948 |
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Main Authors: | , , , , |
Format: | Article |
Language: | eng ; por |
Subjects: | |
Online Access: | Get full text |
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Summary: | Purpose: This study aims at verifying the negative impact of the announcement made by OPEC to maintain oil production - on March 5, 2020 - on the oil companies´ share prices in the main countries of Latin America and the BRIC´s.Design/methodology/approach: Such objective is verified through an event whose final sample consists of 29 oil companies of Brazil, Chile, Colombia, Russia, India and China.Findings: H1- OPEC announcement negatively affects the share price of oil companies- is not confirmed. However, H2 – OPEC announcement differently affects the share price of oil companies in Latin America and other emerging countries that make up the BRIC - is confirmed.Research limitations/implications: The sample considers only oil companies operating in the oil and integrated gas segments, as well as oil and gas exploration and production.Practical implications: These results expand the understanding of the impact of oil commodity price shocks on the share prices of oil companies in emerging countries, during the Covid-19 pandemic.Originality/value: Verification of a positive shock impact on the supply or the reduction in the oil price on the return on shares of BRIC´s companies and among other Latin American countries, during Covid-19. |
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ISSN: | 1983-4659 1983-4659 |
DOI: | 10.5902/1983465963575 |