The Impact of Economic Policy Uncertainty on US Transportation Sector Stock Returns
Adeel Riaz (),
Shujahat Haider Hashmi and
Muhammad Asif Khan
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2018, vol. 8, issue 4, 163-170
Development of transportation sector is a fundamental prerequisite for economic growth, which is sensitive to variations in domestic and international economic policies. In this vein, we investigate how domestic and global economic policy uncertainty affects stock returns of transportation sector firms in the United States. We deploy autoregressive distributed lag bounds testing method to investigate the relationship of monthly returns of Dow Jones Transportation Average with economic policy uncertainty, global economic policy uncertainty, and other macroeconomic factors. Our findings suggest that economic policy uncertainty at the national and international level negatively influences the stock returns of the transportation sector. The paper also demonstrates a positive effect of industrial production and consumer’s confidence on returns of U.S. transportation sector. The empirical findings offer useful policy implications to the stakeholders of the US transportation sector.
Keywords: Transportation stock return; economic policy uncertainty; global economic policy uncertainty; industrial production; consumer confidence (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://hrmars.com/hrmars_papers/The_Impact_of_Econ ... r_Stock_Returns1.pdf (application/pdf)
http://hrmars.com/hrmars_papers/The_Impact_of_Econ ... r_Stock_Returns1.pdf (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hur:ijaraf:v:8:y:2018:i:4:p:163-170
Access Statistics for this article
More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().