The return response on gold and crude oil during global geopolitical issues

Authors

  • Azarya Putra Ari Sam Ratulangi University
  • Jordy Siwu Sam Ratulangi University
  • Merlyn Sari Sambur Sam Ratulangi University
  • Sisilia Kristiana Kawulur Sam Ratulangi University

DOI:

https://doi.org/10.58784/cfabr.20

Keywords:

returns, gold, crude oil, geopolitics

Abstract

The geopolitical issues together with the COVID-19 pandemic in earlier of 2022 triggered instability in the world economy. The objective of this study is to analyze the correlation and response of the returns of firms in the energy sector to changes in gold and crude oil prices. The observed data is drawn over the period June 2021 to June 2022 on the monthly basis for 68 listed firms in the energy sector, gold prices, and crude oil prices. This study finds that the changes in gold returns tend not to affect the changes in returns of firms in the energy sector. Reversely, the changes in returns of crude oil significantly affect the changes in returns of firms in the energy sector.

Downloads

Download data is not yet available.

References

Arisandhi, V. D., & Robiyanto. (2022). Exchange rate, gold price, and stock price correlation in ASEAN-5: Evidence from COVID-19 era. Jurnal Manajemen dan Kewirausahaan, 24(1), 22-32. DOI: 10.9744/jmk.24.1.22-32

Audy, N. A., Harunnurrasyid, & Andaiyani, S. (2022). The COVID-19 pandemic: What factors can affect BUMN-20 stock return in Indonesia? Jurnal Ekonomi Pembangunan, 20(1), 67-76. DOI: 10.29259/jep.v20i1.17926

Bakrie, C. R., Delanova, M. O., & Yani, M. Y. (2022). Pengaruh perang Rusia dan Ukraina terhadap perekonomian negara kawasan Asia Tenggara. Caraka Prabu: Jurnal Ilmu Pemerintahan, 6(1), 65-86. DOI: 10.36859/jcp.v6i1.1019

Fama, E. F., & French, K. R. (2004). The capital asset pricing model: Theory and evidence. Journal of Economic Perspectives, 18(3), 25-46. DOI: 10.1257/0895330042162430

Gerung, D. S., Arikalang, S. S., Agow, T., & Sambeka, I. M. J. J. (2022). The effect of the gold index and NIKKEI on the Indonesian market index. The Contrarian: Finance, Accounting, and Business Research, 1(2), 30-34. DOI: 10.58784/cfabr.8

Ghazani, M. M., & Jafari, M. A. (2021). Cryptocurrencies, gold, and WTI crude oil market efficiency: A dynamic analysis based on the adaptive market hypothesis. Financial Innovation, 7(29), 1-26. DOI: 10.1186/s40854-021-00246-0

Khaliq, A. (2022). Global and country-specific geopolitical risks and exchange rate volatility: New empirical evidence from Indonesia. Jurnal Ekonomi Kuantitatif Terapan, 15(2), 225-239. DOI:10.24843/JEKT.2022.v15.i02.p05

Kumar, J. J. A., & Robiyanto. (2021). The impact of gold price and US Dollar Index: The volatile case of Shanghai Stock Exchange and Bombay Stock Exchange during the crisis of COVID-19. Jurnal Keuangan dan Perbankan, 25(3), 508-531. DOI: 10.26905/jkdp.v25i3.5142

Novilia, R., Yuliansyah, & Widiyanti, A. (2022). Reaksi pasar modal terhadap pandemi COVID-19 di Indonesia. Review of Applied Accounting Research, 2(1), 36-48. DOI: 10.30595/raar.v2i1.13011

Pagora, D. A., Supu, I. S., Memah, P. Y., & Manangkabo, R. (2023). The effect of NIKKEI and crude oil on market indices during COVID-19 in Indonesia. The Contrarian: Finance, Accounting, and Business Research, 2(1), 1-5. DOI: 10.58784/cfabr.18

Perold, A. F. (2004). The capital asset pricing model. The Journal of Economic Perspectives, 18(3), 3-24. DOI: 10.1257/0895330042162340

Potto, O. S. A., & Robiyanto. (2021). The dynamic correlation between oil prices and the Indonesian oil companies’ stock price. Image: Jurnal Riset Manajemen, 10(1), 28-43. DOI: 10.17509/image.v10i1.31283

Putra, A. R., & Robiyanto. (2019). The effect of commodity price changes and USD/IDR exchange rate on Indonesian mining companies’ stock return. Jurnal Keuangan dan Perbankan, 23(1), 103-115. DOI: 10.26905/jkdp.v23i1.2084

Sandra, & Kim, S. S. (2022). The impact of geopolitical risk, state ownership, and group affiliations on Indonesian firms' cash reserves. Jurnal Keuangan dan Perbankan, 26(1), 1-25. https://jurnal.unmer.ac.id/index.php/jkdp/article/view/6930

Stefan, Y. A., & Robiyanto. (2019). The influence of exchange rate, world oil price, and BI rate on Airline Companie’s return in Indonesian Stock Market. International Journal of Social Science and Business, 3(3), 321-328. DOI: 10.23887/ijssb.v3i3.21059

Tanod, E. G., Pontoh, F. A. S., Tuyu, G., & Marianne, H. (2022). The influence of the crude oil and the gold on energy sector returns. The Contrarian: Finance, Accounting, and Business Research, 1(2), 35-40. DOI: 10.58784/cfabr.9

Utama, O., & Puryandani, S. (2020). The effect of BI rate, USD to IDR exchange rates, and gold price on stock returns listed in the SRI KEHATI index. Jurnal Dinamika Manajemen, 11(1), 39-47. DOI: 10.15294/jdm.v11i1.21207

Yudianto, I., Muharam, H., & Sugiono. (2018). The effect of inflation, USD and YUAN exchange rate, crude oil WTI and ICP to indices sectoral returns in Indonesian Stock Exchange. Jurnal Bisnis Strategi, 27(1), 63-78. DOI: 10.14710/jbs.27.1.63-78

Zakiyah, T., & Windasari, W. (2022). Investing in Indonesia during the pandemic COVID-19, it is safe? Inovasi: Jurnal Ekonomi, Keuangan dan Manajemen, 18(3), 602-610. https://journal.feb.unmul.ac.id/index.php/INOVASI/article/view/11089

Downloads

Published

2023-03-15

How to Cite

Ari, A. P., Siwu, J., Sambur, M. S., & Kawulur , S. K. (2023). The return response on gold and crude oil during global geopolitical issues. The Contrarian : Finance, Accounting, and Business Research, 2(1), 12–17. https://doi.org/10.58784/cfabr.20

Issue

Vol. 2 No. 1 (2023)

Section

Articles

License

Copyright (c) 2023 Azarya Putra Ari, Jordy Siwu, Merlyn Sari Sambur, Sisilia Kristiana Kawulur

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Under this license then authors free to:

  • Share - copy and redistribute the material in any medium or format.
  • Adapt - remix, transform, and build upon the material for any purpose, even commercially.

The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  • Attribution - You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  • No additional restrictions - You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.


Notices:

  • You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation.
  • No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.