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Measured impact of federal government policies as determined by stock market capital values for selected industries

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Date Issued:
1994
Summary:
Government policies can reduce or increase wealth. Some governmental actions are explicit, such as the collection of taxes or fees. The effects of other actions are less apparent, such as safety regulations or meat inspection standards. Specific governmental policies were matched to related industry groups who would seem affected by the action. The stock values for each of the industrial groups were analyzed using a time series methodology. The data for the investigation came from the actual stock prices at weekly checkpoints over a two year period. Each group has a total stock value and the matching Dow Jones Industrial Average for each time period. Forecast values are compared to actual values for the critical periods previous to and following the pronouncement of the policy. The results are compared on a case by case basis within each industry, and an aggregate conclusion was drawn based on all five industries. Overall, the short term outcome reflected stock market reaction which caused most values to decrease from the news. Long term values were restored for the most part in relation to the total stock market behavior as represented by the Dow Jones Industrial Average. The intent of the research was to measure wealth changes as a result of governmental policy pronouncements. The capital values of the stock market provided a means of measuring wealth. While this paper did not intend to provide investment insight, one can conclude that short term downturns from some governmental policies are short term in nature. A savvy investor may be able to outperform the market average using such downturns as a strategic investment point.
Title: Measured impact of federal government policies as determined by stock market capital values for selected industries.
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Name(s): Fuller, Edward E.
Florida Atlantic University, Degree Grantor
deHaven-Smith, Lance, Thesis Advisor
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Issuance: monographic
Date Issued: 1994
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 146 p.
Language(s): English
Summary: Government policies can reduce or increase wealth. Some governmental actions are explicit, such as the collection of taxes or fees. The effects of other actions are less apparent, such as safety regulations or meat inspection standards. Specific governmental policies were matched to related industry groups who would seem affected by the action. The stock values for each of the industrial groups were analyzed using a time series methodology. The data for the investigation came from the actual stock prices at weekly checkpoints over a two year period. Each group has a total stock value and the matching Dow Jones Industrial Average for each time period. Forecast values are compared to actual values for the critical periods previous to and following the pronouncement of the policy. The results are compared on a case by case basis within each industry, and an aggregate conclusion was drawn based on all five industries. Overall, the short term outcome reflected stock market reaction which caused most values to decrease from the news. Long term values were restored for the most part in relation to the total stock market behavior as represented by the Dow Jones Industrial Average. The intent of the research was to measure wealth changes as a result of governmental policy pronouncements. The capital values of the stock market provided a means of measuring wealth. While this paper did not intend to provide investment insight, one can conclude that short term downturns from some governmental policies are short term in nature. A savvy investor may be able to outperform the market average using such downturns as a strategic investment point.
Identifier: 12396 (digitool), FADT12396 (IID), fau:9295 (fedora)
Note(s): Thesis (Ph.D.)--Florida Atlantic University, 1994.
Subject(s): Capital market--United States
Stock exchanges--United States
Industrial policy--United States
United States--Economic policy
Corporations--United States
Held by: Florida Atlantic University Libraries
Persistent Link to This Record: http://purl.flvc.org/fcla/dt/12396
Sublocation: Digital Library
Use and Reproduction: Copyright © is held by the author with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Use and Reproduction: http://rightsstatements.org/vocab/InC/1.0/
Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.