Nobody downloaded yet

Impact of foreign exchange rate on stock returns - Dissertation Example

Comments (0) Cite this document
Dissertation, Finance and Accounting Impact of foreign exchange rate on stock returns Name: Course: Professor: Institution: City and State: Date: Chapter 5: findings and analysis 5.1 Introduction The ADF test was applied in this study to test the null hypotheses of unit root in each of the series…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.6% of users find it useful
Impact of foreign exchange rate on stock returns
Read TextPreview

Extract of sample
"Impact of foreign exchange rate on stock returns"

Download file to see previous pages Table 1 reports the results of Augmented Dickey Fuller test of unit root for the stock indices and exchange rates of both the UK and Pakistan. The test has further been applied at different levels as well as in the first difference form. The findings will be reported in terms of each country starting with the UK first then Pakistan. Both the ADF and regression results will be presented for the country indices and then for each of the companies. This chapter is divided into several parts with the main parts comprising study findings for the UK (both ADF test and regression), study findings from Pakistan (ADF and regression), and finally the analysis section where these findings are discussed and analyzed. 5.2 Findings (UK) Augmented Dickey Fuller (ADF) Test Table 1 below presents ADF results for UK companies and GBP/USD rate. As is evident in the table, the results include the FTSE 100 index and ten major companies operating in the UK. Table 2 provides the findings of the ADF test for the national exchange rate (EX) of the GBP against the GBP. Table 1: Augmented Dickey Fuller test (UK companies and FTSE 100 Index) Augmented Dickey fuller (ADF) test (UK companies and FTSE 100 Index) Index + companies S= Index value/ stock price Critical values of 1%, 5%, 10% at Level ?S= 1st difference Critical values at 1%, 5%, 10% for ?S FTSE 100 -2.250374 -3.486064 -2.885863 -2.579818 -10.25769 -2.584707 -1.943563 -1.614927 Antofagasta -3.066955 -4.036983 -3.448021 -3.149135 -12.97182 -2.584707 -1.943563 -1.614927 Babdock -1.747700 -4.036983 -3.448021 -3.149135 -10.71888 -3.486551 -2.886074 -2.579931 HSBC Holdings -2.867695 -3.486064 -2.885863 -2.579818 -10.42942 -2.584707 -1.943563 -1.614927 Imperial tobacco -2.160689 -4.036983 -3.448021 -3.149135 -11.17921 -2.584707 -1.943563 -1.614927 Johnson matthey -2.543982 -4.036983 -3.448021 -3.149135 -10.41562 -2.584707 -1.943563 -1.614927 Meggit 0.828451 -2.584539 -1.943540 -1.614941 -11.56089 -2.584707 -1.943563 -1.614927 Morrison -2.901854 -4.036983 -3.448021 -3.149135 -11.50647 -2.584707 -1.943563 -1.614927 Pearson plc -1.841245 -4.036983 -3.448021 -3.149135 -12.55195 -3.486551 -2.886074 -2.579931 Standard chartered bank -1.868623 -3.486064 -2.885863 -2.579818 -10.62130 -2.584707 -1.943563 -1.614927 Weir group -1.782673 -4.036983 -3.448021 -3.149135 -9.851895 -2.584707 -1.943563 -1.614927 Table 2: Augmented Dickey fuller (ADF) test (GBP/USD) Augmented Dickey fuller (ADF) test (GBP/USD) Currency X= Exchange rate Critical values of 1%, 5%, 10% at Level ?X= 1st difference Critical values at 1%, 5%, 10% for ?X GBP/USD -2.046301 -4.036983 -3.448021 -3.149135 -9.755815 -2.584707 -1.943563 -1.614927 According to the findings of the study, the ADF test results for the FTSE 100 index show that FTSE statistic value does not exceed the critical values at the 1%, 5%, and 10% critical levels. Therefore, the null hypothesis of the unit root for the index ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Impact of foreign exchange rate on stock returns Dissertation”, n.d.)
Impact of foreign exchange rate on stock returns Dissertation. Retrieved from https://studentshare.org/finance-accounting/1484529-impact-of-foreign-exchange-rate-on-stock-returns
(Impact of Foreign Exchange Rate on Stock Returns Dissertation)
Impact of Foreign Exchange Rate on Stock Returns Dissertation. https://studentshare.org/finance-accounting/1484529-impact-of-foreign-exchange-rate-on-stock-returns.
“Impact of Foreign Exchange Rate on Stock Returns Dissertation”, n.d. https://studentshare.org/finance-accounting/1484529-impact-of-foreign-exchange-rate-on-stock-returns.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
A regression analysis study on the relationship between oil price volatility and UK oil and gas companies' returns
In the context of United Kingdom covering the period 2003-2012, Crude Oil and Natural Gas prices volatility along with other factors are studied in order to seek their relationship with their corresponding equity returns of the oil and gas sector. Evidences show insufficient conformances of the real relationship between oil prices and their corresponding equity returns whereas meager evidences exist which proves the presence of a relationship between gas prices returns and oil and gas sector returns.
20 Pages(5000 words)Dissertation
Foreign Exchange Rates as Unbiased Estimate of Future Sport Rates
The objective is to establish proof that EMH in its weak form is evident in currencies, since EMH was originally developed for the equities market. Investors and businessmen seek to avoid the risks of unexpected market fluctuations which tended to raise costs and increase the chances of losses, by discovering methods of forecasting future exchange rates.
26 Pages(6500 words)Dissertation
The empirical relationship between accounting disclosure and stock market return using portfolio analysis and managerial behavio
Besides the opportunity for portfolio diversification, investors prefer stocks in international markets due to a number of other factors like high returns, favorable laws etc. Irrespective of their geographical location, investors remain vigilant over the prospects and performances of the companies they have invested in.
10 Pages(2500 words)Dissertation
Emprical evaluation of Value at Risk(VaR) model using the Lusaka stock exchange
DECLARATION I, Leonard Mwango Chungulo, do declare that this work is my own and that the work of other persons utilized in this dissertation has been duly acknowledged. This work presented here has not been previously presented at this or any other university for similar purposes.
10 Pages(2500 words)Dissertation
Impact of Announcing Dividends on Share Prices of Corporations Listed in the Saudi Stock Exchange
The complete dissemination of available information throughout the market reduces information distortions and allows market participants to decide their market actions under conditions of reduced risk of the unknown. Because of the need to come as close as possible to full and simultaneous availability of information to all market participants, it becomes necessary to measure how efficiently prices respond to the informational content of sudden and unexpected announcements, one of which pertains to dividends.
12 Pages(3000 words)Dissertation
Monetary Policy and the Stock Market: Empirical Evidence from the UK

Different research studies have been conducted in order to identify and explore the relationship between the monetary policy and stock market. The central bank has always been under pressure to come up with appropriate monetary policy in order to regulate inflation and output gap in the economy.

30 Pages(6500 words)Dissertation
The impact of Oil price changes on the Gulf Council Countries (GCC) stock markets
The researcher will try to find out the effect of the oil prices on the stock markets of Gulf Council Countries considering all the factors which affects the stock market like the capital existing in the market, the gross domestic product, the unemployment rate etc. Is there a positive correlation between the two or there is a negative correlation between the two variables that would also be analyzed.
12 Pages(3000 words)Dissertation
Stock Market Index 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. Following China’s WTO membership, international investors gained easier access to the financial market. The Chinese government is trying to change the function of the two existing stock exchanges.

22 Pages(5500 words)Dissertation
Ghana Stock Market
To illustrate how a stock market operates and spreads the wealth in one country, let us say Company-A has been so successful in its manufacturing operations that all its goods sell as fast they are produced. The firm knows that it could sell even more products if it could get enough money to build another factory.
59 Pages(14750 words)Dissertation
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.
Let us find you another Dissertation on topic Impact of foreign exchange rate on stock returns for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us