The Dynamic Impact of Crude Oil Price and Real Estate Growth on Stock Market Performance

• Main Authors: Yau, Josephine Tan Hwang, Awang Omar, Dayang Siti Salbiah binti, Khan, Mubashir Ali, Liwan, Audrey, Kueh, Jerome Swee Hui
• Format: Article
• Language: English
• Published: Society of Business and management 2021
• Subjects: HG Finance
• Online Access: http://ir.unimas.my/id/eprint/35022/1/Josephine.pdf; http://ir.unimas.my/id/eprint/35022/; https://cibg.org.au/article_10128.html
• Institution: Universiti Malaysia Sarawak

This paper examines the effect of crude oil price and real estate growth on Malaysian stock market performance by examining the monthly data from 1999-2016 using both linear and non-linear tests. These tests examine the long-run and short-run relationship among variables. Granger causality test is used to measure the short-run adjustments towards the long-run relationship among the variables. The results of Granger causality test indicates that a bidirectional relationship exists between stock market performance, crude oil price, real estate. In other words, there is a dynamic relationship among the stock market performance, crude oil and real estate.