Business & Economics
Technology: Do Announcement Dates Matter in the Stock Market?
Document Type
Oral Presentation
Location
Indianapolis, IN
Subject Area
Business & Economics
Start Date
11-4-2014 1:30 PM
End Date
11-4-2014 2:45 PM
Sponsor
Hisaya Kitaoka (Franklin College)
Description
Technology is a constantly evolving field. The author considers that technology-representing smartphones today cannot be isolated in relation to the stock prices of technological companies. This research considers how the computer market reacts to new technology. A relationship between the introduction of new technology and the stock price of a leading computer company "Apple" is explored.The author uses announcement dates for smartphones, gaming systems and programming systems for the introduction of new technology. Announcements of new technology made by Apple include that for iPhones, iPads and iTunes etc. Announcements of new products made by other rival technological companies such as Motorola, Samsung, BlackBerry, Nokia, Sony, and Microsoft are also considered. This paper, using a pooled OLS methodology and the data for announcements of new technology and stock prices for the major seven technological companies all over the past decade (between 2003 and 2013), found out the following results. First, announcements of a new technology or a new product made by Apple has a statistically significant effect on the stock price of Apple. Second, announcements of new technology or a new product made by rival companies of Apple also have a significant effect on Apple's stock price. The paper concludes that this research can help to predict the impact that announcement dates can have on stock in the future.
Technology: Do Announcement Dates Matter in the Stock Market?
Indianapolis, IN
Technology is a constantly evolving field. The author considers that technology-representing smartphones today cannot be isolated in relation to the stock prices of technological companies. This research considers how the computer market reacts to new technology. A relationship between the introduction of new technology and the stock price of a leading computer company "Apple" is explored.The author uses announcement dates for smartphones, gaming systems and programming systems for the introduction of new technology. Announcements of new technology made by Apple include that for iPhones, iPads and iTunes etc. Announcements of new products made by other rival technological companies such as Motorola, Samsung, BlackBerry, Nokia, Sony, and Microsoft are also considered. This paper, using a pooled OLS methodology and the data for announcements of new technology and stock prices for the major seven technological companies all over the past decade (between 2003 and 2013), found out the following results. First, announcements of a new technology or a new product made by Apple has a statistically significant effect on the stock price of Apple. Second, announcements of new technology or a new product made by rival companies of Apple also have a significant effect on Apple's stock price. The paper concludes that this research can help to predict the impact that announcement dates can have on stock in the future.