Why Volatility Diminishes As Pension Funds Investments On...

Thomas, Spataro and Mathew (2014) test whether volatility diminishes as pension funds investments in stock increases. The hypothesis was pre-defined and clearly mentioned at the beginning of the study in an easy understandable way. To test hypotheses, they use a panel data of 34 OECD countries with specific time range from 2000-2010. They determine the independent variable which is equity market volatility and several dependent variables including the ratio of pension funds assets invested in shares and pension funds assets invested at the country level, average volatility of all OECD countries, value of stocks, inflation rate, income level per capita and the ratio of public debt to GDP. They have identified the variables what may have an impact on the volatility of stock market and give clear and detailed information on why these variables were included in the model. Data also has been described and reported by measuring central tendency of the data. A main descriptive statistics of the variables used in the model shown below. The descriptive statistics includes number of observation, mean, standard deviation and range. The most popular measure of central tendency is mean, which reports the average of variables. In this study mean represents an average value of each variable among 34 OECD countries with 374 observations in total. On the basis of those averages further tests were performed. Median is another measure of tendency, which represents the middle point but hasShow MoreRelatedTechnical Interview Guide22795 Words   |  92 Pages................................................. 23 Advanced ..................................................................................................................................................................................... 30 Stocks ............................................................. ................................................................................................................................. 31 Basic ..............................................Read MoreTen Ways To Create Sharholders Value Alfred Rappaport8372 Words   |  34 PagesRappaport identifies 10 powerful practices. First among them: Don’t get sucked into the short-term earnings-expectation game—it only tempts you to forgo value-creating investments to report rosy earnings now. 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