Money and stock prices.

dc.contributor.authorCross, Stevenen_US
dc.contributor.departmentEconomics & Financeen_US
dc.date.accessioned2014-06-20T16:05:23Z
dc.date.available2014-06-20T16:05:23Z
dc.date.issued1984en_US
dc.description.abstractThis study was conducted to examine the issues and controversy surrounding the relationship between the money supply and stock prices. The specific issue addressed in this study was whether current stock price changes were significantly related to past or future changes in the money supply.en_US
dc.description.abstractThe investigation began with an examination of the theoretical framework for such a relationship. This was followed by a review of the related empirical studies. Finally, additional empirical evidence was presented.en_US
dc.description.abstractThe examination of the theoretical framework included the stock valuation model, the quantity theory of money, the rational expectations hypothesis, and the efficient market hypothesis.en_US
dc.description.abstractThe empirical portion of this study employed multiple regression analysis and correlation analysis to examine the relationship between current stock price changes and past and future changes in the money supply for the period 1960-82 and the subperiods 1960-72 and 1978-82. The money supply measures were M1 and M2, revised and seasonally adjusted. The stock price measure was the Standard and Poor's Composite 500-Stock Index. Percentage changes in both series were examined for both monthly and quarterly data. Additionally, a Chow test was conducted to test for structural differences in the relationship between the periods 1960-72 and 1973-82.en_US
dc.description.abstractThe results of the empirical portion of the study indicate that the nature of the relationship can best be described as one where current changes in stock prices are related to past money supply changes. However, future changes in the money supply, at least a measured by monthly M2, also appear to be significantly related to current stock prices when the 1973-82 and 1960-82 periods are examined. The findings also indicate that there appears to be a structural difference in the relationship between the money supply and stock prices between the periods 1960-72 and 1973-82.en_US
dc.description.abstractMoreover, the findings indicate that several factors, such as differences in the periods examined, differences in measures of money supply, differences in data bases employed, differences in methodologies, etc. may account for differences in the findings and conclusions of previous studies.en_US
dc.description.degreeD.A.en_US
dc.identifier.urihttp://jewlscholar.mtsu.edu/handle/mtsu/3811
dc.publisherMiddle Tennessee State Universityen_US
dc.subject.lcshStocks Pricesen_US
dc.subject.lcshMoney supplyen_US
dc.subject.lcshEconomics, Financeen_US
dc.thesis.degreegrantorMiddle Tennessee State Universityen_US
dc.thesis.degreelevelDoctoralen_US
dc.titleMoney and stock prices.en_US
dc.typeDissertationen_US

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