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Cost Structure Complexity And Stock Prices Volatility: An Analysis Of Possible Relationship Among Italian Listed Companies In The Period Of Crisis

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  • Francesco PAOLONE

    (University of Teramo, Italy)

Abstract

This paper analyzes the relationship between complexity in cost structure (Jennings et al., 2013) and stock price volatility concerning Italian Listed Companies to determine over the period of crisis whether firm complexity is associated with risk. Using data collected for 153 available Italian listed companies from AIDA database, I found that there was no relationship between stock market volatility and cost structure complexity among Italian Listed Companies. I also found that cost service was the most relevant element within 40 complex Italian listed companies and suggested an integrating analysis with further measures of complexity approaches.

Suggested Citation

  • Francesco PAOLONE, 2014. "Cost Structure Complexity And Stock Prices Volatility: An Analysis Of Possible Relationship Among Italian Listed Companies In The Period Of Crisis," Romanian Journal of Economics, Institute of National Economy, vol. 38(1(47)), pages 107-133, June.
    • Handle: RePEc:ine:journl:v:1:y:2014:i:47:p:107-133
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    More about this item

    Keywords

    Organizational Complexity; Measures of Complexity; Cost Structure; Volatility; Stock Return;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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