Inflation, output and stock prices: evidence from Latin America
Article Abstract:
The negative relationship between stock returns and inflation rate in Chile and Peru's stock markets has been studied using Fama's hypothesis. The two countries were chosen because both are in various stages of implementing market reforms. Chile began economic reforms in the mid-1980s while Peru did so recently. Fama argued that rising inflation reduces real economic activity and demand for money. Sluggish economic activity in turn diminishes corporate profits and stock prices. Results indicate that there is no basis for Fama's hypothesis based on the two countries' economic performance. The negative relationship persists even after the effects of inflation are eliminated from real economic activity.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
The effects of ownership structure and diversification strategy on performance
Article Abstract:
An economic model was developed to analyze the influence of ownership structure and diversification strategy on performance. Cross-sectional data were obtained from a set of 228 Fortune 500 companies. Results indicate that ownership structure and diversification affect differences between company performances. The differences are conditioned by the level of profit and market capitalization and management stockholidngs.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The impact of financial liberalization on stock price volatility in emerging markets
- Abstracts: The impact of financial liberalization on stock price volatility in emerging markets. part 2 Audit hierarchy in a corrupt tax administration
- Abstracts: Demand and pricing of telecommunications services: evidence and welfare implications. Ownership structure and the quality of medical care: evidence from the dialysis industry
- Abstracts: Pricing, exit, and location decisions of firms: evidence on the role of debt and operating efficiency. Is the IPO pricing process efficient?
- Abstracts: Monte Carlo evidence on cointegration and causation. Human capital spillovers within the workplace: evidence for Great Britain