Does oil price affect the value of firms? Evidence from Tunisian listed firms

Kaouther ZAABOUTI, Ezzeddine BEN MOHAMED, Abdelfettah BOURI

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Front. Energy ›› 2016, Vol. 10 ›› Issue (1) : 1-13. DOI: 10.1007/s11708-016-0396-8
RESEARCH ARTICLE

Does oil price affect the value of firms? Evidence from Tunisian listed firms

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Abstract

A new debate on the potential impact of oil price changes on the value of firms was initiated in this paper. Using a stochastic frontier approach, an attempt was made to derive the optimal value Q* of firms and calculate the Q value observed. Then the shortfall (Q*–Q) which represents the inefficiency term was explained. Starting from 19 industrial Tunisian firms listed on the Tunis Stock Exchange between 2007 and 2011, the fact that variation of oil prices can largely explain distortions in the value of firms was empirically demonstrated.

Keywords

oil price / value of firm / stochastic frontier approach / industrial Tunisian firms

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Kaouther ZAABOUTI, Ezzeddine BEN MOHAMED, Abdelfettah BOURI. Does oil price affect the value of firms? Evidence from Tunisian listed firms. Front. Energy, 2016, 10(1): 1‒13 https://doi.org/10.1007/s11708-016-0396-8

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