An Investigation of the Impact of Oil Price Changes on the Gulf Dissertation

An Investigation of the Impact of Oil Price Changes on the Gulf Council Countries (GCC) Stock Markets - Dissertation Example According to the report any fluctuation in oil prices does not go unnoticed. However an increase or decrease in oil prices does not have a uniform effect worldwide. Some countries gain and some suffer the consequences. This paper seeks to identify and analyse the relationship of oil prices to the stock markets of the GCC, which stands for Gulf cooperation council.From this paper it is clear that the most general assumption is that the changes in the oil prices have an indirect impact on the stock market. This theory is applicable as it is believed by most economists, commentators and journalists. This relationship between oil prices and the stock market can be easily justified by the most famous headline of the Wall Street Journal that says â€Å"Oil Spikes Pummels Stock Market†. Also, the Financial Times also captured the attention of the investors regarding oil prices impact on the stock market by displaying headline which says â€Å"U.S. Stocks Rally as Oil Prices Fallâ₠¬ . According to the research, the relationship between of oil prices and the stock market is quite unpredictable and is very strange than it is assumed by most investors. No one makes this negative relationship as a thumb of rule but most of the time these both variables move in opposite directions. This means that as the oil prices goes up it shows a negative impact on the stock market. On the other hand, as the price of the oil goes down it results in a positive impact on the stock market.... It is needed for ?guaranteeing the economy’s as well as modern industries development. The fluctuation in prices ?of oil is considered to be an indicator of the global or worldwide economy. Each change in oil ?price is discussed as a hot topic both generally as well as in economic and the political circles of ?every country. There are various factors that may affect the oil prices and cause them to ?fluctuate. Major of these are the balance shifts in demand and supply of oil market, exchange rate ?fluctuation of dollar, Opportunistic Practices and instability of geopolitical factors/. These factors jointly work for bringing change in the oil prices and this change tends to have an impact upon the stock exchange performances of different countries as well. The dissertation aims to investigate the impact of oil price fluctuation upon the stock market index of the GCC countries over the last five years. The dissertation examines and analyses the data for last five years using the linear regression model and it has been unveiled from the calculation of the data using the model that the GCC countries’ stock exchanges have always responded strongly towards the changes in oil fluctuation and the oil prices changes occurred during the last five years have also altered the stock exchanges indexes of the GCC countries. Table of Content Acknowledgements Declaration 1. Chapter one: Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦.8 1.1. Aim and Objectives of the study †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦.14 1.2. Methodology and data†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦.15 1.3. The structure of the

Leases (Accounting) Essay Example | Topics and Well Written Essays - 1500 words

Leases (Accounting) - Essay Example The proposed changes have come to address this concern wherein structuring the amount presented in the transaction is reduced to achieve a desired accounting outcome. Also, to decrease complexity, to improve transparency and comparability, and to have more complete financial statements, the IASB and US FASB had published a joint proposal to change the existing standard of lease accounting. The scope of the proposed improvement involves US - SFAS 13 and IFRS - IAS 17 wherein the aim is to develop a new single approach instead of the previous operating and finance lease approaches (ACCA 2009). In the proposed ‘right-of-use’ mode, investors and other users of financial statements need not to make necessary adjustments because all assets and liabilities are now being recognized in the statement of financial position. In this paper, the advantages and disadvantages of the proposed changes from the board exposure draft will be recognized. Also, the impact of the new single approach on the financial statements will be given an appropriate analysis. The exposure draft has been published to solicit comments from the public either positive or negative. The board thinks that the advantages of creating a consistent approach will decrease complexity and at the same time increase comparability of financial statements that will outweigh the disadvantages (FASB 2010 p.93). Advantages. Providing a complete presentation of financial reporting information for users of financial statements will increase transparency, and this is one of the major advantages of the proposal (IFRS 2009 p.4). A ‘complete presentation’ in the sense that the understated assets and liabilities arising from all lease contracts will now be identified. All of the company’s leasing activities either in a form of an assets or liabilities will now be