The impact of the OPEC announcement on the oil companies' share prices
DOI:
https://doi.org/10.5902/1983465963575Keywords:
OPEC announcement, Oil companies, Study of events, Mean difference testAbstract
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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