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Analysis Of The Correlation Between Tanker Rate And Tanker Companies’ Stock Price

Posted on:2014-02-12Degree:MasterType:Thesis
Country:ChinaCandidate:Y XinFull Text:PDF
GTID:2249330398452544Subject:Transportation planning and management
Abstract/Summary:PDF Full Text Request
Since the world economy situation is bad, the shipping market has also entered the depression. Many listed tanker companies’stock price has rocked bottom. Even today, the world has gradually got out of the shadow of economic crisis, but the shipping market is still weak. Listed tanker companies’stock price is low. Researching the relationship between tanker freight rates and the stock price could help decisionmakers and investors. Especially the extreme shipping market volatility of recent days, researching the association between them could either enrich the practical significance of the tanker freight rates, while provide investors in the stock market with some reference information. Therefore researching the relationship between tanker freight rates and listed tanker companies’stock price has important theoretical and practical significance.The paper first reviews the literature of the freight rate index and stock prices, as well as the literature of studying the relationship of them. Then the paper analyzes the BDTI and stock pricing influencing factor. And the paper tryies to find out their impact mechanism. According to the preceding analysis, combining with the characteristics of the sample data, the BDTI and two listed tanker companies’stock price are chosen as variable. The paper also does the co-integration test of the tanker freight rates and stock price. And find the equilibrium exists between them. On the basis of previous studies, then the paper does the Granger causality test of tanker rate and the listed tanker companies’stock price. So the paper establishes vector error correction model of them to study the long-term and short-term relationship, and find that tanker freight rates in the short term change may lead to the change of stock price. In the long term if one of them deviates from the equilibrium, it will suffer negative adjustment. Finally the paper draws a conclusion of their relationship, so investors in the stock market can get some suggestions from the study when making investment decisions.
Keywords/Search Tags:Baltic Dirty Tanker Index, stock market indices, Vector ErrorCorrection Model, Granger-causality test, co-integration test
PDF Full Text Request
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