This paper analyses the influence of commodity price shocks on companies’ firm value. Two timeframes of shocks on the commodities copper, aluminium as well as two rare earth elements, neodymium and lanthanum, were studied on their effects on stock prices.
Companies have been selected according to their industry, their size, country of origin and commodity exposure. Unique issues in this work are the focus on commodity price shocks and the pre- selection of companies, where the chosen commodities are assumingly key input factors. Therefore this paper attempts to shed new light on the importance of commodity price exposure for the firm value of companies.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- 1. Introduction
- 2. Literature Review
- 3. Commodity price exposure
- 4. Methodology
- 4.1. Data Selection
- 4.1.1. Commodity exposure
- 4.1.2. Country of origin
- 4.1.3. Company Size
- 4.1.4. Commodity Prices
- 4.1.5. Index Selection
- 4.2. Regression Model
- 5. Results
- 6. Discussion and Conclusion
- 6.1. Practical Implications
- 6.2. Limitations and Further Research
- References
- List of figures and tables
- List of appendices
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the influence of commodity price shocks on the firm value of companies. The research focuses on the impact of price shocks on the commodities copper, aluminium, neodymium, and lanthanum, on stock prices of companies selected based on their industry, size, country of origin, and commodity exposure. The study highlights the significance of commodity price exposure for firm value.
- Impact of commodity price shocks on company value
- Influence of price shocks on specific commodities like copper, aluminium, neodymium, and lanthanum
- Role of company characteristics (industry, size, country of origin, commodity exposure) in relation to price shocks
- Importance of commodity price exposure for firm value
- Comparison to previous research on oil price shocks and their effects on firm value
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction discusses the increasing global demand for commodities and its impact on corporate earnings and share prices. It compares the focus on oil price shocks in previous research with the analysis of other commodities in this paper. The paper aims to analyze the impact of commodity price shocks on company value for various industries and commodities.
The literature review section provides an overview of existing studies on the impact of commodity price exposure on firm value, focusing on the limited research available outside of oil price shocks. The paper aims to fill this gap by analyzing the impact of other commodities on firm value.
The methodology section details the data selection process and the regression model used in the analysis. This section explains the selection of companies based on their industry, size, country of origin, and commodity exposure. It also outlines the data sources and statistical methods used to analyze the impact of commodity price shocks on stock prices.
Schlüsselwörter (Keywords)
This paper explores the impact of commodity price shocks on company value, examining the effects of price shocks on copper, aluminium, neodymium, and lanthanum. The analysis considers company characteristics such as industry, size, country of origin, and commodity exposure, highlighting the significance of commodity price exposure for firm value. The paper differentiates its approach from previous research focused primarily on oil price shocks and extends the understanding of commodity price volatility's influence on company performance.
- Quote paper
- Philipp Heilmann (Author), Benjamin Ihbe (Author), Melanie Marziw (Author), 2011, The influence of commodity price shocks on share prices, Munich, GRIN Verlag, https://www.grin.com/document/190634
