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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