Stock Returns vs. Inflations in the Greek Stock Exchange Market

By



ACKNOWLEDGEMENT

I am very grateful to God who has given me the grace to start this course and end it successfully. I would like to thank my family, who worked really hard and stood by me all the way. God bless my family who gave me full support and encouraged me. I would like to thank my supervisor, for her patience and support. Finally to my friends and all who have made the completion of this project a success, thank you and God bless you.

DECLARATION

I declare that the work in this dissertation was carried out by me. The project is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other award.

SIGNED: ............................................................. DATE: ..........................

ABSTRACT

The major purpose of this dissertation is to conduct an analysis of the Stock Return and Inflation in the Greek Stock Exchange. There was also a need to assess the various factors related to the research study. It was important to see the relationship between the Stock Returns and Inflation which was discussed in the study. There were five banks that were selected to be analyzed listed in the Greek Stock Exchange. The five year period was used for these companies from 2006-10. The monthly stock returns and the annual inflation rate which is the CPI (Consumer Price Index) were calculated in the research study. The relationship between both these variables were tested in the topic. The research concluded that companies were significantly affected because of the volatility in the stock return and inflation figures in this period. All these issues provided a lot of important evidence which was very important in interpreting the overall results of the study. Therefore, these were the overall content related to research study that was discussed in detail.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Overview of the topic1

1.2 Statement of the Problem2

1.3 Research Objectives2

1.4 Significance of the Study2

CHAPTER 2: LITERATURE REVIEW3

2.1 Overview of the Stock Returns3

2.2 The importance of Stock Returns in Corporate World4

2.3 The relationship between Stock Returns and Stock Volatility6

2.4 Return Volatility Studies in Emerging Stock Markets8

2.5 The relationship between Operational Management and Stock Returns9

2.6 Developments of the Stock Returns in Recent Years15

2.7 The relation of risk factors with Stock Returns and Inflation20

CHAPTER 3: METHODOLOGY25

3.1 Overview of the Research Methodology25

3.2 Research Hypothesis25

3.3 Research Model26

3.4 Sample size of the research26

3.5 Significance of Research27

3.6 Data Collection Procedure27

3.7 Ethical Concerns for the Research28

CHAPTER 4: DISCUSSION AND ANALYSIS29

4.1 Data Research29

4.2 Data Analysis29

4.3 Methodology and Models for the Research30

4.4 Overall Evaluation of the Banking Sector31

4.5 Data Analysis of the Inflation and Stock Returns35

4.6 SPSS Analysis of the Inflation and Stock Returns51

4.7 Findings of the study58

CHAPTER 5: CONCLUSION59

5.1 Summary of the topic59

5.2 Reasoning and Justification for the selection of data60

5.3 Limitations of the Study61

5.4 Recommendations for the study62

REFERENCES63

CHAPTER 1: INTRODUCTION

1.1 Overview of the topic

It is not impossible to find in the literature many studies on that provide scientific evidence ...