A Proposed Model to Interpret the Behavior of Macroeconomic / Market Variables and Their Linkage with the Saudi Petrochemical Sector

Abstract

The study seeks to identify the economic and the market factors that، effect on the returns of the petrochemical sector market listed at the Saudi Tadawul market، using the arbitrage pricing model to estimate the return of the petrochemical sector، using some economic variables such as changes in oil prices، the growth rate in the gross national product and the rate of inflation. The study found through the multi linear regression model showed that، there is a positive relationship between the returns of the petrochemical sector with the market value، money supply، and the treasury bill returns. The researchers recommended that، the study be conducted on other economic variables and for a longer period، as well as measure the impact of economic variables on the returns of the Saudi market using other sectors.