Impact of oil price on Norwegian oil companies’ stock price movement

Abstract

The aim of this master’s thesis is to find out how the oil price impacts Norwegian oil companies’ stock price and what kind of financial variables are relevant to investors, who are investing in Norwegian oil companies. The first pillar presents the theoretical and empirical part of oil price, company’s financial performance impact on stock price and the causes of oil price movement. The second pillar presents research paper methodology research paper’s object, stages, limitations of data and methods. In the third pillar we investigate regression results of the relationships. The regression results show that overall the oil price has a positive impact on Norwegian oil price movement. However, there are some outliers, who have no relationship with oil prices or the impact is negative. Moreover, the OPEC decisions and currency exchange rates do not have an impact on almost all oil companies. The regression results of relationship between oil companies stock price and their financial variables showed that nowadays investors are more interesting in company’s liquidity and efficiency variables.