Rethinking Valuation and Pricing Models

13

Towards a Replicating Market Model for the US Oil and Gas Sector

John Simpson^∗ and Goknur Buyukkara^∗∗

^∗Curtin University

^∗∗University of Hacettepe

Chapter Outline

13.1 Introduction

13.2 Model

13.3 Data

13.4 Preliminary Analysis and Results

13.5 Main Results

13.5.1 Subperiod 1

13.5.2 Subperiod 2

13.5.3 Full Period

13.6 Conclusion

References

13.1 Introduction

Researchers often look to macroeconomics in supply and demand for shares and oil and macroeconomic variables, such as oil prices, interest rates, unemployment, growth rates and exchange rates, to help explain the movements in the globally powerful US oil and gas stock market sector. Another approach used in this chapter is to examine financial markets and risk ratings data.

The specific ...