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.
Table of Content
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. IndexSelection
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
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