Oil shocks and the transmission of higher-moment information in US industry: Evidence from an asymmetric puzzle

Muhammad Abubakr Naeem, Raazia Gul, Ahmet Faruk Aysan, Umar Kayani

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

Using a cross-quantilogram approach, this study analyzes the transmission of higher-moment information across US industries with high-frequency (1-min) data. We investigate the effects of oil demand and supply shocks on this transmission, revealing that the impact is asymmetric. Specifically, negative oil price shocks amplify the asymmetric transmission of higher-moment information, whereas positive shocks have the opposite effect. The findings highlight the complexity in information transmission dynamics in response to oil price fluctuations, highlighting the need for policy makers and investors to account for these nuances when assessing risk and making decisions. The results emphasize the critical role of the direction and magnitude of oil prices in shaping the information landscape across industries.

Original languageEnglish
Pages (from-to)1190-1204
Number of pages15
JournalBorsa Istanbul Review
Volume24
Issue number6
DOIs
Publication statusPublished - Nov 2024

Keywords

  • Asymmetry
  • Cross-quantilogram
  • Higher-moment information
  • Oil shocks
  • US industries

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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