The Influence of Oil Prices on Stock Market Returns in Saudi Arabian Companies: The Implementation of Econometric Models
The Influence of Oil Prices on Stock Market Returns in Saudi Arabian Companies: The Implementation of Econometric Models

Summary/Abstract: The countries in the sample are of special importance, as they have different rates of growth, different important characteristics of the financial system and levels of stock market progress. The research looks on equity market growth and measures its foreign economic effect, not in terms of profitability to investors (not beyond the scope of our study), but in terms of progress relative to the scale of these economies and the capital expenditure fund needs of those countries.The data used in this study were taken from GCC's monthly time series over the 2008-2018 period. Such factors are actual interest rates, global development level, commodity market returns on commodities and the true price of oil (in US dollars). Thomson Reuters DataStream, Bloomberg and OECD database gather data for this study. For this study, the actual interest rate was selected as this element illustrates market swings.The Industrial Production Index has defined it since the overall energy consumption in an economy is calculated by the amount of products and services generated in the region.The research implemented and econometric approach throughout addressing data from 2008 till 2018 which means 10 years to study the impact of oil prices, exchange rates and their impact on stock market, case Saudi Arabia.The key results showed that the contemporary and postponed impacts on economic development in either capital market liquidity, as measured by turnover or economic change, as measured by the institutional efficiency index. The relationship predictor (investment / Turnover ratio) was seen for the Arab countries to have an important result from the robustness measure. Implementing the strategy of gross capital expenditure expansion and the turnover partnership will lead to a positive impact on the connection between country expenditure and stock market liquidity during the competitive growth model.

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