The Impacts of Monetary Macro Variables on Stock Price of Automotive Companies (Case Study of Tehran Stock Exchange)

اقتصاد پولی مالی

Article 8, Volume 20, Issue 5, April 2013, Pages 187-210   

Document Type: علمی

DOI: 10.22067/pm.v20i5.34046

Authors

Ali Akbar Naji Meidani^* ; Sayedeh Zahra Shakeri; Fatemeh kobra Bata

Abstract

Stock is an item of financial assets portfolio. So, understanding the factors influencing its value concerns investors. Price changes in the stock Exchange is not only due to internal factors such as dividends, net profit and cash flows of the companies, but also external factors such as macroeconomic variables. Automotive industry, in the world, is one of most strategic industries and in Iran has the highest share in GDP after oil industry.
This paper investigates the relationship between stock price of automotive companies in Tehran Stock Exchange and monetary macro variables such as exchange rate and consumer price index by using panel data from 2004 - 2010.
Our results show direct and significant relationship between stock prices of the companies with their dividends and real incomes and so with the exchange rate ,while there is a negative relationship between stock price and consumer price index.

Keywords

Automotive industry; stock price; Exchange Rate; Consumer price index; Panel Data