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Investigating the Impact of Declining Oil Prices in Global Stock Markets: Oil Exporting and Oil Importing Countries

Investigating the Impact of Declining Oil Prices in Global Stock Markets: Oil Exporting and Oil Importing Countries
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Author(s): Jose J. Haspa DeLarosiere (Universidad EAFIT, Colombia)
Copyright: 2017
Pages: 14
Source title: Value Relevance of Accounting Information in Capital Markets
Source Author(s)/Editor(s): Marianne Ojo (George Mason University, USA)and Jeanette Van Akkeren (QUT School of Accountancy, Australia)
DOI: 10.4018/978-1-5225-1900-3.ch013

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Abstract

As well as illustrating wider and interrelated repercussions of plunging oil prices on the global economy – and its impact on global financial markets, this chapter also re affirms the realization that the strong form of the Efficient Market Hypothesis appears to introduce less accountability than the weak and semi strong components. Even though it appears that fundamentals underlying previous Financial Crises and recent volatilities differ, recent evidence also provides interesting information about turbulences that currently plague global stock markets. Can previous historical records be relied upon (reasonably or otherwise) to predict future outcomes? Where predictability (redictive values) and confirmatory attributes (confirming values) constitute components of relevance in financial reporting, then it appears that certain historical reports, data and information based on the age and relevance of such data, still constitute relevant and reliable data given that such information is current, relevant and reliable in the sense that it can be predicted upon, confirmed and verified.

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