Research

Research in Applied Economics ISSN 1948-5433 2009, Vol. 1, zero(prenominal) 1: E12 The Dynamics of notes Prices, Gold Mining comport Prices and investment firm Market Prices Comovements Claire G. Gilmore department of Accounting and Finance, Kings College Wilkes-Barre, dadaism 18711, United States Tel: 570-208-5900 E-mail: clairegilmore@kings.edu Ginette M. McManus (Corresponding author) Department of Finance, angel Josephs University 5600 urban center Avenue, Philadelphia, Pennsylvania 19131, United States Tel: 610-660-1632 E-mail: gmcmanus@sju.edu Rajneesh Sharma Department of Finance, saint Josephs University 5600 City Avenue, Philadelphia, Pennsylvania 19131, United States Tel: 610-660-1115 E-mail: rsharma@sju.edu Ahmet Tezel Department of Finance, Saint Josephs University 5600 City Avenue, Philadelphia, Pennsylvania 19131, United States Tel: 610-660-1570 abstract We try the dynamic familys amid atomic number 79 prices, birth price indices of specie minelaying companies and broad monetary fund solid food market indices. Evidence of cointegration among these variables is found. A vector error-correction model reveals that both(prenominal) capital and large-capitalisationitalisation stock prices adjust to disturbances to restore the long-term alliance between the variables.

Short-term unidirectional causal relationships are rails from large-cap stock prices to gold mining company stock prices and from gold mining company stock prices to gold prices. Keywords: Gold mining company stock prices, Cointegration, Vector error-correction model 1 www.macrothink.org/rae E-mail: atezel@sju.edu Research in Applied Economics ISS N 1948-5433 2009, Vol. 1, No. 1: E12 1. I! ntroduction The returns of gold- tie in securities, much(prenominal) as common stock in gold mining companies, are widely considered to be related to changes in gold prices and, to a much lesser extent, to habitual stock market returns. A number of studies have examined the relationship between gold prices and gold mining company returns, including Blose and Shieh (1995),...If you hope to get a full essay, order it on our website: OrderEssay.net

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