Presenter(s)

Thomas Campbell, Bryan Thomas

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Description

Many investment managers look for momentum in top line revenue growth to determine if they want to purchase a particular stock or a group of stocks. In this study, we looked at the last eight quarters of revenue data for 30 stocks currently in the Flyer Fund and determine their compound quarterly growth rate (COGR) for 4 quarters and 8 quarters of data. Using Bloomberg's database, our timeline is from August 31, 2011 through August 31,2013. Using cross sectional regression analysis we regressed the 4 quarter and 8 quarter CQGR's on the compound quarterly growth rate on price (CQGP) for each stock. We also took the rate of 4 quarter CQGR to the 8 quarter CQGR and regressed it on the value of the 4 quarter CQGP to the 8 quarter CQGP. The hypotheses to be tested is that stock price movements are directly related to the momentum levels of company revenues.

Publication Date

4-9-2014

Project Designation

Graduate Research

Primary Advisor

Robert Dean, Trevor Collier

Primary Advisor's Department

Economics and Finance

Keywords

Stander Symposium project

Disciplines

Arts and Humanities | Business | Education | Engineering | Life Sciences | Medicine and Health Sciences | Physical Sciences and Mathematics | Social and Behavioral Sciences

Revenue Momentum and Stock Price Movements for Flyer Fund Stocks: A Short Run Analysis

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