Accounting, finance & control

Relationship between stock returns of different sectors

October 3, 2017 | 1 min read

Based on previous studies, responses of different sectors within U.S stock market to inflation rates have not been studied in detail. On the other hand, there are some contradictory studies, which was a motivation for Seyedhamidreza Hosseini, alumnus of MScBA at TIAS School for Business and Society, to study on this topic.

This study investigates the relationship between stock returns of different sectors within the U.S. stock market and inflation rates over a period of 21 years. Due to undeniable effects of real activity and interest rate on inflation, Hosseini has included these two macroeconomic variables into the regression models. The linear regression demonstrates that past rates of inflation influence the current stock returns, while the responses of stock returns to inflation rates vary from one sector to another. Moreover, real activity is discovered to have a positive effect on the expected stock returns of all sectors. Conversely, most of the sectors do not have a significant relationship with previous values of interest rates.

Read his study here.

This article appeared in Journal of Multidisciplinary Engineering Science and Technology (JMEST). Vol. 4 Issue 8, August - 2017

Full-time MSc in Business Administration

Our Full-time Master of Science in Business Administration degree course program will enable you to act in and engage with different areas of an organization. You will not only acquire the necessary knowledge and skills but also get ample opportunity to practice and apply them in theoretical and practical settings. To further shape you as a responsible business leader, you will also take into regard the various social impacts and consequences of business decisions.


Grow at TIAS

At TIAS we believe in Life Long Development, continuous personal, professional and network development during and after your studies. With more knowledge, better skills and a broader network, you will be able to create more impact and be successful.

More about learning at TIAS » 

Brochure TIAS School for Business & Society

Get to know TIAS: The business school for tomorrow's leaders.