Factors Affecting Apple's Share Price Essay

3447 Words Apr 22nd, 2013 14 Pages
Anthony Fisher
This research aims to explore what variables effect the common stock share price of Apple Inc (AAPL). The variables being used are closing price, volume, NASDAQ composite (IXIC), dividend amount, news, and total return. A multiple linear regression is run to determine what variables are significant.
Fall
12
Variables Effecting AAPL
08
Fall

Ohio Wesleyan University

Introduction There are many factors that determine a common stock’s share price. To some, it is pure speculation and confidence within the market, to others this a multitude of factors that determine a common stock’s share price that is traded on many exchanges around the world. According to Sunde and Sanderson, these variables that control a common
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The results from the research did conclude that “the behavior of price fluctuations is rooted in the characteristics of volatility,” and they felt their research would bring interest to “stochastic volatility models” in the future (Fuentes 3).
Sadeghzadeh and Karimi use a regression model to test the effect of a firm’s news on its share price on the Tehran Stock Exchange (TSE). They used such variables as required disclosures (RD), and voluntary disclosures (VD). Both of these variables were quantified. The regression that was run produced results showing a “negative and significant relationship between Required Disclosures of Information in annual financial statements and mid-term (6 months) reports, too” (Sadeghzadeh 354). The findings also showed a negative and non-significant relationship with voluntary disclosures ( Sadeghzadeh 354). The only issue I see with this research is that Sadeghzadeh and Karimi only had two variables to test. Also, there was no real indication of if the reports showed a negative or positive result of retained earnings, costs, etc. I feel these important determinants should have been denoted in some form within the model. Finally, the exchange they use, the Tehran Stock Exchange (TSE) is the largest stock exchange in Iran, but does not seem to have much validity when compared to such exchanges as the New York Stock Exchange

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