Oil market volatility and foreign ownership: the case of Saudi Arabia

IF 2.8 3区经济学 Q2 BUSINESS, FINANCE International Journal of Islamic and Middle Eastern Finance and Management Pub Date : 2024-08-13 DOI:10.1108/imefm-10-2023-0395

Abdulrahman Alhassan, Lakshmi Kalyanaraman, Hanan Mohammed Alhussayen

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Abstract

Purpose

This study aims to evaluate the resource curse hypothesis in an oil-dependent economy, Saudi Arabia, through examining the impact of oil price volatility on foreign ownership among Saudi listed firms.

Design/methodology/approach

The study analyzes a unique data set of firm-level data on foreign ownership for the period 2009–2015. A multivariate regression model was applied to analyze the relationships under study.

Findings

The analysis reveals a negative association between oil price volatility and foreign ownership in firms with high leverage and low stock volatility.

Research limitations/implications

Policymakers are encouraged to develop policies to control shocks in the supply and demand of oil and enforce economic diversification. Investors can better understand the dynamics of an oil-based economy stock market based on the investment behavior of foreign investors and their response to oil price shocks.

Originality/value

This study adds to the literature by analyzing the relationship understudy in an oil-rich and oil-dependent emerging economy, where its critical economic parameters are influenced by oil price volatility and it has the largest and the most liquid stock exchange in the MENA region.

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石油市场波动与外资所有权：沙特阿拉伯的案例

目的本研究旨在通过考察石油价格波动对沙特上市公司中外资所有权的影响，评估沙特阿拉伯这一依赖石油的经济体中的资源诅咒假说。研究限制/意义鼓励政策制定者制定政策，控制石油供需的冲击，促进经济多样化。投资者可以根据外国投资者的投资行为及其对石油价格冲击的反应，更好地了解以石油为基础的经济体股票市场的动态。本研究通过分析一个石油资源丰富、依赖石油的新兴经济体的关系，为相关文献增添了新的内容，该经济体的关键经济参数受到石油价格波动的影响，并且拥有中东和北非地区规模最大、流动性最强的证券交易所。

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来源期刊

International Journal of Islamic and Middle Eastern Finance and Management Multiple-

CiteScore

5.40

自引率

10.00%

发文量

期刊介绍： The International Journal of Islamic and Middle Eastern Finance and Management (IMEFM) publishes quality and in-depth analysis on current issues within Islamic and Middle Eastern finance and management. The journal welcomes strong evidence-based empirical studies and results-focused case studies that share research in product development and clarify best practices. The title is also keen to consider work from emerging authors. IMEFM has just also accepted into Clarivate''s SSCI in 2018, and its IF will be available in summer 2019, with citations dating from 2016. The coverage includes but is not limited to: -Islamic finance: Fundamentals, trends and opportunities in Islamic Finance, Islamic banking and financial markets, Risk management, Corporate finance, Investment strategy, Islamic social finance, Financial planning, Housing finance, Legal and regulatory issues, -Islamic management: Corporate governance, Customer relationship management and service quality, Business ethics and corporate social responsibility, Management styles and strategies in Shariah environments, Labour and welfare economics, Political economy. The journal is the only title aiming to give an interdisciplinary and holistic view on Islamic finance and business management practices in order to inform these two intertwined communities.