TAKING STOCK OF THE MARKET

摘要

It is generally believed that companies' stock prices are determined by actual net profits and their expectations, the latter of which are affected by macroeconomic factors. Despite this generally accepted belief, there is very little existing statistical research examining 'expectational' data by correlating share price evolution with net profits expectations. Therefore, I decided to see for myself and have completed an econometric analysis to examine if this has been true for the container shipping industry over the past five years.