Influence of News on the Aircraft Manufacturing Stocks Dynamics

In the view of current developments in the world’s industrial production, the aviation sector is one of the most fundamental, high-tech and science-intensive market niche. In terms of finance, one of the most crucial problem for the industry is the post-announcement stock dynamics of aircraft manufacturers. The present thesis investigates the question, whether the dynamics of stocks of aircraft manufacturing companies depends on news background. For this, an empirical analysis is carried out to examine the influence of news upon the development of stock values of the foreign aircraft companies using such leading financial information providers as Bloomberg and Thomson Reuters. Hereby, detailed industry survey, study of a large amount of specialized literature and news background analysis directly result in the choice of the empirical method of linear regression analysis with abnormal gains or losses of stocks. It is anticipated that the results of this study will help to determine how strong the influence of the news background on stocks dynamics is and define the opportunities for investors.