The Impact of Oil Prices on the Plastic Stock Index in Taiwan

• Main Authors: Jung- Shiang Fu, 傅榮祥
• Other Authors: Wen-Chi Liou
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/39070512232702316672

碩士 === 大葉大學 === 管理學院碩士在職專班 === 102 === Raw materials are the main variable costs for manufacturing sectors. The plastic industry is a capital intensive industry. Plastic materials-- polyvinyl chloride (PVC), polyethylene (PE, polypropylene (PP), and polystyrene (PS) are extracted, processed, and aggregated from crude oils. Accordingly, the fluctuation of international crude oil prices may affect the stock price of the plastic industry. This study uses the vector auto-regression model as the main research method to explore the impact of the International crude oil price on plastic stock prices. The objects of this study are Taiwan plastics firms. This study employs the average price of three major international crude oils to analyze their impact on Taiwan plastic stock prices. Weekly data are used in this study and the time span is from the first week of January, 2009 to the first week of September, 2013. Empirical results show the international oil price returns are positively associated with the Taiwan plastic stock price returns. The international oil price returns do not lead Taiwan plastic stock price returns.