Advanced

The Importance of Industry-, Country- and Global Factors for the Return on Technology Stocks

Wikholm, Cecilia LU and Olsson, Malin (2017) NEKN02 20171
Department of Economics
Abstract
We investigate to what degree return on technology stocks are affected by industry-, country- and global factors. Furthermore, the analysis is extended to look deeper into the industry factors by examining what the exposure of technology stocks to industry-specific shocks is caused by. In previous studies, the aim has been to try to determine whether industry-, country- or global effects are the most prominent for international stock returns; however, the technology industry has not yet been thoroughly investigated. There are 27 countries included in the analysis, from both developed and emerging markets. The years investigated are 1990-2015 and include returns from a technology index and an equity index for each country, a global... (More)
We investigate to what degree return on technology stocks are affected by industry-, country- and global factors. Furthermore, the analysis is extended to look deeper into the industry factors by examining what the exposure of technology stocks to industry-specific shocks is caused by. In previous studies, the aim has been to try to determine whether industry-, country- or global effects are the most prominent for international stock returns; however, the technology industry has not yet been thoroughly investigated. There are 27 countries included in the analysis, from both developed and emerging markets. The years investigated are 1990-2015 and include returns from a technology index and an equity index for each country, a global technology index and a global equity index.

The results show that industry-, country- and global effects exist in the technology industry. Moreover, high-technology export is found to have a significantly positive impact on the exposure to industry-specific shocks, whereas the dot-com crisis had a negative impact on the exposure. These results are important for forming an optimally diversified portfolio that includes technology stocks, when diversifying across industries and countries. (Less)
Please use this url to cite or link to this publication:
author
Wikholm, Cecilia LU and Olsson, Malin
supervisor
organization
course
NEKN02 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
Industry-, country- and global effects, technology industry, exposure, portfolio diversification
language
English
id
8909846
date added to LUP
2017-06-13 15:17:55
date last changed
2017-06-13 15:17:55
@misc{8909846,
  abstract     = {We investigate to what degree return on technology stocks are affected by industry-, country- and global factors. Furthermore, the analysis is extended to look deeper into the industry factors by examining what the exposure of technology stocks to industry-specific shocks is caused by. In previous studies, the aim has been to try to determine whether industry-, country- or global effects are the most prominent for international stock returns; however, the technology industry has not yet been thoroughly investigated. There are 27 countries included in the analysis, from both developed and emerging markets. The years investigated are 1990-2015 and include returns from a technology index and an equity index for each country, a global technology index and a global equity index.

The results show that industry-, country- and global effects exist in the technology industry. Moreover, high-technology export is found to have a significantly positive impact on the exposure to industry-specific shocks, whereas the dot-com crisis had a negative impact on the exposure. These results are important for forming an optimally diversified portfolio that includes technology stocks, when diversifying across industries and countries.},
  author       = {Wikholm, Cecilia and Olsson, Malin},
  keyword      = {Industry-,country- and global effects,technology industry,exposure,portfolio diversification},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Importance of Industry-, Country- and Global Factors for the Return on Technology Stocks},
  year         = {2017},
}