| Abstract [eng] |
SUMMARY ASSESSMENT OF STOCK PROFITABILITY AND ITS RELATION TO PHASES OF THE BUSINESS CYCLE IN THE STOCK MARKET Justina DRUMSTAITĖ Master thesis Finance and Banking master study programme Vilnius University, Faculty of Economics and Business Administration Supervisor - Doc. dr. Jekaterina Kartašova Vilnius, 2022 SUMMARY 77 pages, 23 tables, 10 pictures, 110 references. The main purpose of this master thesis is to determine the relationship between stock profitability and phases of the business cycle in the French stock market. The work consists of three main parts; the analysis of literature, the research methodology and research with interpretations of its results. Literature analysis reviews concept of stock markets, types of shares, methods which are used when trying to evaluate stock profitability, concept of business cycles and points out which macroeconomic indicators tend to change along with the phases of business cycle. Some of the first authors to examine the problem of the business cycle were Burns and Mitchel (1946), they defined the business cycle as a change in total economic activity and said that the best way to measure it is to use the GDP growth indicator. Nevertheless, phases of the business cycle can be indicated using other macroeconomical indicators, too. The second part of this thesis focuses on the dynamics of macroeconomical indicators that help to indicate the phase of the business cycle trough the chosen time period. Also, this part of the thesis analyzes the stock profitability dynamics of companies that are listed on Euronext Paris stock market, and how they change during every phase of the cycle, including recession of COVID-19. Last part of the thesis reveals the relationship between stock profitability and phases of the business cycle. It also reveals how stock profitability variable is affected by phases of business cycle. |
