Empirical Research on Exchange Rate and Stock Prices of Manufacturing Companies.pdf

1、Both exchange market and stock market play important roles in a country's economic development. The issue of whether stock prices and exchange rates are related has received considerable attention after the East Asian cr

2、ises. This article explores the interaction between 1ZMB/USD exchange rate and manufacturing index using daily data for the period from August 1, 2005 to August 1,2010. Methods being used in the article include Pearson t

3、est, ADF unit root test, Johansen cointergration test and Grange causality test. The empirical results show both long-term cointergration and short-term relationship between exchange rate and the stock index. The conclus

4、ions support the flow-oriented model and reveal negative linkage between two variables.Both government and companies should pay attention to these inner connections maintain a stable financial market and foreign exchange