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Stock Returns, Real Activity, and the Trust Question
Author(s) -
BITTLINGMAYER GEORGE
Publication year - 1992
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1992.tb04680.x
Subject(s) - stock (firearms) , aside , corporation , volatility (finance) , economics , financial economics , stock price , stock market crash , monetary economics , crash , business , stock market , finance , mechanical engineering , art , paleontology , literature , horse , series (stratigraphy) , engineering , biology , computer science , programming language
Periodic antitrust attacks on corporations may have influenced stock prices. For the period 1904 to 1944, each antitrust case filed is associated with a 0.5 to 1.9 percent drop of the Dow, and each unexpected case with even larger drops. Other aspects of antitrust besides actual filings may help account for other movements, in particular the 1929 Crash. Historical evidence bears on the question of whether antitrust is exogenous and also links antitrust and the “corporation problem.” These results illustrate the sorts of real factors aside from changes in concurrent output that may account for stock price volatility.