The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19

The current research was conducted with the aim of investigating the effect of asymmetric shocks in the exchange rate and oil price on the performance of the Iranian stock market using monthly data from 2011 to 2021. the quantile regression model is examined in deciles ranging from 0.1 to 0.9. The r...

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Main Authors: Masoumeh Shirinpour, Gholamali Haji, Ahmad Sarlak, Hamidreza Alipour
Format: Article
Language:English
Published: Iranian Association for Energy Economics 2023-11-01
Series:Environmental Energy and Economic Research
Subjects:
Online Access:https://www.eeer.ir/article_176662_7793648bb601d490e519f5f8bc3b0d2c.pdf
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author Masoumeh Shirinpour
Gholamali Haji
Ahmad Sarlak
Hamidreza Alipour
author_facet Masoumeh Shirinpour
Gholamali Haji
Ahmad Sarlak
Hamidreza Alipour
author_sort Masoumeh Shirinpour
collection DOAJ
description The current research was conducted with the aim of investigating the effect of asymmetric shocks in the exchange rate and oil price on the performance of the Iranian stock market using monthly data from 2011 to 2021. the quantile regression model is examined in deciles ranging from 0.1 to 0.9. The results show that the quantile estimates were not symmetrical, but in other conditions such as recession, normal, boom and strong growth, oil shocks had a significant negative impact on stock market returns. The impact of exchange rate shocks on stock market returns was not significant in severe recession conditions. But in the conditions of recession, normal, boom and high boom, exchange rate shocks have a positive and significant effect on the performance of the Iranian stock market. In addition, in this research, the effect of exchange rate and oil shocks during the COVID-19 epidemic was analyzed, which had a significant effect on the effectiveness of oil shocks on stock returns. This asymmetric effect was observed in different negative and significant deciles. Therefore, it can be seen that fluctuations in the global oil price and exchange rate expose some of Iran's key indicators, including the capital market, to instability.
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institution Kabale University
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publishDate 2023-11-01
publisher Iranian Association for Energy Economics
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series Environmental Energy and Economic Research
spelling doaj-art-7cfc4e71d2de4120a6d47270b4d84cbf2025-08-20T03:29:09ZengIranian Association for Energy EconomicsEnvironmental Energy and Economic Research2538-49882676-49972023-11-017411710.22097/eeer.2023.399257.1291176662The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19Masoumeh Shirinpour0Gholamali Haji1Ahmad Sarlak2Hamidreza Alipour3Department of Economics, Arak Branch, Islamic Azad University, Arak, IranDepartment of Economics, Arak Branch, Islamic Azad University, Arak, IranDepartment of Economics, Arak Branch, Islamic Azad University, Arak, Iran.Department of Management, Rasht Branch, Islamic Azad University, Rasht, IranThe current research was conducted with the aim of investigating the effect of asymmetric shocks in the exchange rate and oil price on the performance of the Iranian stock market using monthly data from 2011 to 2021. the quantile regression model is examined in deciles ranging from 0.1 to 0.9. The results show that the quantile estimates were not symmetrical, but in other conditions such as recession, normal, boom and strong growth, oil shocks had a significant negative impact on stock market returns. The impact of exchange rate shocks on stock market returns was not significant in severe recession conditions. But in the conditions of recession, normal, boom and high boom, exchange rate shocks have a positive and significant effect on the performance of the Iranian stock market. In addition, in this research, the effect of exchange rate and oil shocks during the COVID-19 epidemic was analyzed, which had a significant effect on the effectiveness of oil shocks on stock returns. This asymmetric effect was observed in different negative and significant deciles. Therefore, it can be seen that fluctuations in the global oil price and exchange rate expose some of Iran's key indicators, including the capital market, to instability.https://www.eeer.ir/article_176662_7793648bb601d490e519f5f8bc3b0d2c.pdfasymmetric effectscovid-19currency shockstock returnsoil shock
spellingShingle Masoumeh Shirinpour
Gholamali Haji
Ahmad Sarlak
Hamidreza Alipour
The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19
Environmental Energy and Economic Research
asymmetric effects
covid-19
currency shock
stock returns
oil shock
title The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19
title_full The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19
title_fullStr The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19
title_full_unstemmed The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19
title_short The Effectiveness of Different Decimals of Iranian Stock Market Returns from the Asymmetric Effects of Exchange Rate and Oil price Shocks in the Presence of Covid-19
title_sort effectiveness of different decimals of iranian stock market returns from the asymmetric effects of exchange rate and oil price shocks in the presence of covid 19
topic asymmetric effects
covid-19
currency shock
stock returns
oil shock
url https://www.eeer.ir/article_176662_7793648bb601d490e519f5f8bc3b0d2c.pdf
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