Observation of the events and other factors that can potentially influence the stock prices
Zhuravleva, Anna (2022)
Zhuravleva, Anna
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022120626740
https://urn.fi/URN:NBN:fi:amk-2022120626740
Tiivistelmä
The topic of the external events and information having a potential impact on the stock prices movement has been around and about for a very long time. It is believed that a lot of specialists have been inquiring into finding evidence of the effects on the securities that hypothetically were caused by the events, news and information that is not associated with the fundamental financial factors. Nevertheless, constant debates concerned with this topic, have motivated the researcher to undertake an examination into the figures and variables that could potentially prove or disprove the effects. Furthermore, other possible reasons, behind the stock prices movement, were discussed. Thus, the three research questions or objectives were posed to be discussed in the study. Firstly, to determine if the events observed indeed had any impact and what the reasons behind the impact could have been. Secondly, to find other plausible explanation and reasons behind the observed situation with the security prices.
The choice was made towards the quantitative approach for the research. It was utilized to observe and study the main objectives. The observations were made for the four case companies for the two-year period. The main source of data was obtained from the stock market records for each case firm. Hence, the necessary formula-based calculations were made do obtain the needed figures for the further analysis and discussion. The qualitative data has complimented the quantitative findings for the better under-standing and test of the hypothesis. The qualitative data is represented by the theoretical information form the studies and articles as well as the annual reports.
Based on the obtained information, the objectives and hypothesis were explored through the technique of the event studies. The analysis and discussion have shown that it is moderately plausible that the ob-served events could have had a minor impact on the stock prices fluctuation. Nevertheless, there is no evidence of the lasting effect nor solid evidence that proves the exact pattern of the influence. It has also been concluded that other fundamental factors such as the financial performance of the firms or the global circumstances might have affected the stock prices of the case firms.
The choice was made towards the quantitative approach for the research. It was utilized to observe and study the main objectives. The observations were made for the four case companies for the two-year period. The main source of data was obtained from the stock market records for each case firm. Hence, the necessary formula-based calculations were made do obtain the needed figures for the further analysis and discussion. The qualitative data has complimented the quantitative findings for the better under-standing and test of the hypothesis. The qualitative data is represented by the theoretical information form the studies and articles as well as the annual reports.
Based on the obtained information, the objectives and hypothesis were explored through the technique of the event studies. The analysis and discussion have shown that it is moderately plausible that the ob-served events could have had a minor impact on the stock prices fluctuation. Nevertheless, there is no evidence of the lasting effect nor solid evidence that proves the exact pattern of the influence. It has also been concluded that other fundamental factors such as the financial performance of the firms or the global circumstances might have affected the stock prices of the case firms.