Author/Authors :
Yıldırım, Murat Karabük Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü, Turkey , Belen, Muhammet Karabük Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü, Turkey , Kütük, Yasin İstanbul Teknik Üniversitesi, Turkey
Title Of Article :
EXAMINING THE RELATIONSHIP BETWEEN THE PRODUCT PRICES AND STOCK RETURNS: THE CASE OF ERDEMIR
Abstract :
Iron and steel industry is a capital-intensive industry with high fixed costs. Extreme volatility in product prices causes fluctuations in operating profits of companies in this industry. The aim of this study is to examine the effects of the global iron and steel prices on stock returns. For this purpose in the study, price changes in the global iron and steel products and stock returns of Erdemir, the corporation which produces iron and steel and listed in BIST were analyzed with co-integration, error correction models and causality tests for the period of 1999:01-2012:06. By employing cointegration analysis we found that product prices in iron and steel sector can be monitored as an indicator for stock returns, but we couldn’t find causal relationship between them.
NaturalLanguageKeyword :
Commodity price volatility , Steel prices , Stock returns , Iron and steel sector , Cointegration , Vector error correction model , Granger causality
JournalTitle :
The International Journal Of Economic and Social Research
