StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US - Dissertation Example

Cite this document
Summary
The paper "The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US" is a delightful example of a dissertation on finance and accounting. The stock exchange is one of the key drivers of the capital market, as an investment in stocks helps to raise the financial capital of a firm and the industry at large…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.2% of users find it useful

Extract of sample "The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US"

Download file to see previous pages

The paper "The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US" is a delightful example of a dissertation on finance and accounting. The stock exchange is one of the key drivers of the capital market, as an investment in stocks helps to raise the financial capital of a firm and the industry at large. It has been always speculated that stock returns are influenced by fluctuations in oil prices and the firm value of the respected companies. This is because oil is an important infrastructure for driving the operations of any industry. The focus has been shifted to the likely variables that influence the documented predictors of stock market indices.  Variables like Return on Assets, Price-Earnings Ratio, and Tobin’s Q are considered as documented and effective predictors of stock market indices. Hence, they might be assumed to influence the stock returns indirectly. However, these variables are subjected to different shocks in the stock market and are assumed to be governed and influenced by different independent variables, including oil price.  The results of the dissertation indicated that oil price did not significantly influence Tobin’s ratio, PER and ROA similarly across all industries. For some industries (Transport and Chemicals) it was non-significant but was an influencer as a product of other variables. The Tobin’s Ratio and ROA regression models were effective across all industries with the goodness of fit >80%. However, the PER model had the goodness of fit < 80% across all industries (except the transport industry) and hence should not be considered a very good model of predicting stock returns during fluctuating oil prices or fluctuating exchange rates. However, oil prices did significantly influence the PER of oil companies and oil service companies. The present study indicated that increase in PER related to a decrease in DPS for oil companies. The present study clearly indicated that the ROA model and Tobin’s Q ratio model may be considered effective models for predicting stock returns during fluctuating oil prices or fluctuating exchange rates.

Whether Oil Price is an Effective Predictor of Firm Value and Stock Returns? A Perspective of the United States Industrial Sector

 Chapter 1: Introduction

1.1 Background of the Study

                    It is well known that for achieving long-term sustained economic growth, financial resources should be allocated and optimized appropriately. Hence, financial markets and stock markets are significant influencers of the economic growth of a country. The stock exchange is one of the key drivers of the capital market, as an investment in stocks helps to raise the financial capital of a firm and the industry at large. It has been always speculated that stock returns are influenced by fluctuations in oil prices and the firm value of the respected companies.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US Dissertation Example | Topics and Well Written Essays - 16250 words, n.d.)
The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US Dissertation Example | Topics and Well Written Essays - 16250 words. https://studentshare.org/finance-accounting/2107893-the-impact-of-2007-2008-financial-crisis-on-stock-return-in-china-and-the-us
(The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US Dissertation Example | Topics and Well Written Essays - 16250 Words)
The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US Dissertation Example | Topics and Well Written Essays - 16250 Words. https://studentshare.org/finance-accounting/2107893-the-impact-of-2007-2008-financial-crisis-on-stock-return-in-china-and-the-us.
“The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US Dissertation Example | Topics and Well Written Essays - 16250 Words”. https://studentshare.org/finance-accounting/2107893-the-impact-of-2007-2008-financial-crisis-on-stock-return-in-china-and-the-us.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Impact of 2007-2008 Financial Crisis on Stock Return in China and the US

The Impact of 2008 Financial Crisis on UK's Cross Border Mergers

This study aims to analyze the impact of 2008 financial crisis that has led to a global economic depression on the field of cross border mergers throughout the United Kingdom as part of exploring major expansion opportunities and the difficulties relating to the cross border mergers in the United Kingdom.... This research discusses the strategic ways on how to implement a cross border merger followed by analyzing the advantages of investing through them and tackles in details internal and external factors that need to be considered prior to a merger, the reasons for behind a successful or failed overseas mergers, impact on the shareholders' value and the trend of global mergers post the financial crisis....
36 Pages (9000 words) Dissertation

Impact of Institutional Investors on Corporate Governance

The methods and procedures of institutional investors participation in corporate governance is described, with American and British examples – and how these institutions pertain to china.... But the investors that can help a business rise to the world stage might feel that their interests are best served through mergers or takeovers that permit a favorable return on investments based upon various stock options and projected share values....
34 Pages (8500 words) Dissertation

Spread of the US Financial Crisis and Contagion to Europe

The dissertation "Spread of the us Financial Crisis and Contagion to Europe" focuses on the critical analysis of the most recent US financial crisis, how it developed and spread to other Western countries, how the us appears to have recovered while European countries still reel under the effects.... The contagion refers to the negative effects on the financial markets that spread from the us markets to other countries of the world, as a result of market linkages....
35 Pages (8750 words) Dissertation

Comparison between Emerging and Developed Economies

Recent researches show that the influence of the financial crisis of the us and the Euro zone has been felt more severely in the developed nations rather than on the developing countries.... Many investors of the developed countries such as the United States consider the emerging economies, like, Brazil, India, Russia and china to offer good investment opportunities.... Several research works have been conducted in the past to investigate about the process of integration between these markets and to understand the changes appearing in the risk-return features of emerging markets....
14 Pages (3500 words) Literature review

International Comparisons of Stock Market Volatility

During the financial crisis, there was a 50 percent drop in stock prices.... Contagion effect implies that when one sector fails due to some reasons, the impact will also be felt by other sectors.... TABLE 1 Country Index USA S&P 500 UK FTSE 100 France CAC 40 Germany DAX 30 Xetra Australia All Ordinaries china/Hong kong Hang Seng Singapore Strait Times Malaysia Kuala Lumpur Composite Thailand stock exchange of Thailand china Shanghai...
6 Pages (1500 words) Essay

US Macroeconomic policy 2006-2008

economy had performed well during the last decade of 19th century and in the first five years of this millennium but the us economy did experience a shallow recession in 2001.... In 2006 the us economy was facing a great deal of un-certainty; the economy appears to be approaching a highly desirable glide path.... us Macroeconomic policy 2006-2008 ... In 2007, the American economy began to slow significantly, mostly because of a real-estate slump and related financial problems, there were predictions that margin squeeze from high energy prices or a dollar shock could be crucial factors tipping us growing economy into a downturn....
7 Pages (1750 words) Research Paper

Stock Market Index in China

The aim of this paper 'Stock Market Index in china' is to examine whether macroeconomic activities and consumption trends and political policy have impacts on the movements of China's stock market index, and if so, to what extent these factors affect the volatility of the stock market in china.... The author states that financial market reforms were central to china's commitment to the World Trade Organization, in which china became a member in 2001....
22 Pages (5500 words) Dissertation

Financial Market Analysis: Integration between Chinese Stock Markets and International Stock Markets

This fact has motivated many scholars to examine the return correlations across international markets using time-varying correlation models within the multivariate GARCH framework.... Using data from weekly transactions between January 8, 1987, and February 7, 2002, and an asymmetric and generalized version of Dynamic Conditional Correlation GARCH (DCC-GARCH) model of Engle (2002), they explore the relationship composition of 21 nations stock and bond markets from Europe, America and Australasia....
11 Pages (2750 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us