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Stock return volatility and the internet phenomenon

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Author Info
Virginia Liu
Francis Tapon
Yiguo Sun

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Abstract

This study examines the question of 'Does the internet phenomenon affect the volatility of stock returns of legacy companies?’1 GARCH models and the Wald test are applied to investigate the persistence of stock return volatility and breaks in the volatility. A special GARCH (1,1) model is also employed with an additional regressor (the market return) to observe the trend of time-varying betas.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Financial Economics Letters.

Volume (Year): 2 (2006)
Issue (Month): 2 (March)
Pages: 105-109
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Handle: RePEc:taf:apfelt:v:2:y:2006:i:2:p:105-109

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  1. Young-Hye Cho & Robert F. Engle, 1999. "Time-Varying Betas and Asymmetric Effect of News: Empirical Analysis of Blue Chip Stocks," NBER Working Papers 7330, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April. [Downloadable!] (restricted)
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This page was last updated on 2009-12-15.


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