Consumer confidence announcements: do they matter?
AbstractThis paper examines the response of financial markets to consumer confidence announcements during 1980-93. Several hypotheses are tested to examine the impact of consumer confidence announcements on the conditional mean and the conditional volatility of stock, bond and foreign exchange prices. Despite a plethora of causal empiricism in the popular press, consumer confidence appears to influence only the Dow Jones Industrial Average, and not bond or other stock indexes. However, changes in the consumer confidence index are found to have asymmetric effects on the dollar exchange rates of five major currencies. Finally, we find that the impact of the consumer confidence index on the conditional volatility is not uniform across five major currencies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Financial Economics.
Volume (Year): 8 (1998)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAFE20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lilia Karnizova & Hashmat U. Khan, 2010.
"The Stock Market and the Consumer Confidence Channel in Canada,"
Carleton Economic Papers
10-08, Carleton University, Department of Economics, revised 26 Aug 2011.
- Lilia Karnizova & Hashmat Khan, 2010. "The Stock Market and the Consumer Confidence Channel in Canada," Working Papers 1004E, University of Ottawa, Department of Economics.
- Roger Best, 2008. "CEO Confidence and Stock Returns," Working Papers 0808, University of Central Missouri, Department of Economics & Finance, revised Aug 2008.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.