Date of Conferral

2019

Degree

Ph.D.

School

Management

Advisor

Mohammad Sharifzadeh

Abstract

A rational long-horizon stock investment decision is a complex process due to uncertainty in supply and demand, competitive advantage, macroeconomic parameters and various perspectives of investors. Today, the '€˜non-tangible assets'€™ (NTA) that include goodwill and intangible assets are a significant part of corporate assets, but their role in stock performance has not well studied. The purpose of this research is to empirically analyze the implications of NTA and of gross domestic product (GDP) of the United States on the stock price. According to the efficient market hypothesis, stock price reflects all relevant information. The research question focused on the extent to which NTA and the GDP reflected in the stock price. To determine the extent to which NTA and GDP reflected on the stock price, regression analysis and other statistical tests were used. The sample for the empirical study was 56 corporations listed on the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotation (NASDAQ). The required data from October 2007 to September 2018 were collected from the United States Securities and Exchange Commission (SEC) and the United States Bureau of Economics (BEA). The key findings of the study are: the NTA and stock price of 45 corporations have a statistically significant correlation as opposed to 11 corporations. The combined NTA of these 11 corporations for the third quarter of 2018 was $531.64 billion. Furthermore, the GDP and stock price of 53 corporations have a statistically significant correlation, but no evidence for three corporations was found. The significance for positive social change is knowledge from this research about the implications of NTA and GDP on stock performance that the investors, policymakers, and other stakeholders could use for preserving the limited resources and creating wealth.

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