Presenter(s)

Thomas Charles Letke, Jordan Christopher Nelson

Comments

Presentation: 9:00-10:15, Kennedy Union Ballroom

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Description

In the overall period 1999-2023, there have been four distinct sub-periods of rising federal fund rates. In this study we test the hypothesis that Communcation sector stocks are interest rate sensitive (I.e. Their prices and returns decline when federal funds rates are rising. However, because the four periods differ in terms of length of time, rate of increase in Fed Fund rates and macroeconomic conditions like economic growth and inflation, I expect the degree of interest rate sensitivity for communication sector stocks, period wise, to vary considerably. In this regard, a particular interest is the 2008-2016 period where the federal funds rate was quite low and rising slowly. We use the returns for the top 20 stocks by market cap in the communication sector to measure the sensitivity to rising fed fund rates.

Publication Date

4-17-2024

Project Designation

Independent Research

Primary Advisor

Robert D. Dean, Jon A. Fulkerson, Henry G. Willmore

Primary Advisor's Department

Economics and Finance

Keywords

Stander Symposium, School of Business Administration

Institutional Learning Goals

Scholarship

A long-term study of the impact of rising federal funds rates on communication sector stock returns: An empirical analysis, 1999-2023

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