The relationship between crude oil price fluctuations and the performance of stock market has been analyzed in various literatures, with different relationship (positive, negative, no relationship). However, a wide number of literatures published have not treated other factors that may affect the stock market performance as a result of changes in the oil price. This paper aims to examine whether fluctuations in the global price of crude oil affects the performance of the Taiwan Stock Exchange in terms of value to investors, trade volume, stock prices, and investor behavior. This study will also analyze the specific case of the Republic of China (Taiwan) as a net oil importer, considerably changing the perspective of the analysis. In addition, Taiwan is a country whose Gross Economic Product relies heavily on exports specifically in the high technology industries, and a more thorough analysis of these factors is found in this research.
The relationship between crude oil price fluctuations and the performance of stock market has been analyzed in various literatures, with different relationship (positive, negative, no relationship). However, a wide number of literatures published have not treated other factors that may affect the stock market performance as a result of changes in the oil price. This paper aims to examine whether fluctuations in the global price of crude oil affects the performance of the Taiwan Stock Exchange in terms of value to investors, trade volume, stock prices, and investor behavior. This study will also analyze the specific case of the Republic of China (Taiwan) as a net oil importer, considerably changing the perspective of the analysis. In addition, Taiwan is a country whose Gross Economic Product relies heavily on exports specifically in the high technology industries, and a more thorough analysis of these factors is found in this research.