Vinsamlegast notið þetta auðkenni þegar þið vitnið til verksins eða tengið í það: http://hdl.handle.net/1946/33463
In this study, the effect of the ongoing trade war, which started in 2018 between the United States on the one hand and the European Union, China and Canada on the other, on stock returns of publicly traded companies, is analysed. The major events of the trade war in 2018 are included in the study. The study was formalised into two hypotheses. Firstly, that the announcement of tariffs in one market would lead to average abnormal returns, either positive or negative, for companies in that market. Secondly, that the announcement of tariffs in one market would lead to average abnormal returns, either positive or negative, for companies in a foreign market targeted by the tariffs. The results of the study show a statistically significant evidence supporting the hypotheses. The study also shows that stock market reactions cannot only be expected in the markets directly involved in the events but also in other markets. In the study, there are examples of market behaviour both consistent and inconsistent with the efficient market hypothesis, and examples of where a backwards drift in returns follows a market overreaction.
Keywords: Corporate finance, Fama and French three-factor model, abnormal returns, tariffs, trade war.
|Tariffs and stock returns msc thesis final.pdf||1.47 MB||Opinn||Heildartexti||Skoða/Opna|