How is the company's stock risk associated with its demand elasticity?

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Publication Type honors thesis
School or College David Eccles School of Business
Department Finance
Faculty Mentor Elizabeth Tashjian
Creator Jin, Zhao
Title How is the company's stock risk associated with its demand elasticity?
Year graduated 2014
Date 2014-05
Description I examine a sample of 20 companies to see if individual total stock risk is associated with its product or service demand elasticity. My evidence is consistent with my first hypothesis that elastic firms' stock prices are more strongly affected by the changes in the input cost than are inelastic firms.1 My evidence is also consistent with my second hypothesis that for two companies with same leverage, elastic companies' stock prices are more volatile than those of inelastic companies. Since both of hypotheses were supported by the empirical data, it can be concluded that the higher the company elasticity is, the riskier the company's stock is in terms of total risk.
Type Text
Publisher University of Utah
Subject Elasticity (Economics); Risk; Stocks; Stock risk
Language eng
Rights Management (c) Zhao Jin
Format Medium application/pdf
Format Extent 995,837 bytes
Permissions Reference URL https://collections.lib.utah.edu/details?id=1276566
ARK ark:/87278/s6jd8621
Setname ir_htoa
Date Created 2016-11-10
Date Modified 2019-07-10
ID 205931
Reference URL https://collections.lib.utah.edu/ark:/87278/s6jd8621
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