The impact of the OPEC announcement on the oil companies' share prices




OPEC announcement, Oil companies, Study of events, Mean difference test


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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Author Biographies

Rafael Graicer, Mackenzie Presbyterian University

Undergraduate student of Business Management

Thiago Affonso Nery, Mackenzie Presbyterian University

Undergraduate student of Business Management

Michele Nascimento Jucá, Mackenzie Presbyterian University

PhD Professor of Graduate Program in Business Management

Eli Hadad Junior, Mackenzie Presbyterian University

PhD Professor of Graduate Program in Business Management

Douglas Dias Bastos, Mackenzie Presbyterian University

PhD Professor of Undergraduate Program in Business Management


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How to Cite

Graicer, R., Nery, T. A., Jucá, M. N., Hadad Junior, E., & Bastos, D. D. (2021). The impact of the OPEC announcement on the oil companies’ share prices. Revista De Administração Da UFSM, 14(4), 932–948.