The Effect of the Decline of the Greek Economy on European Businesses

Open Access
Author:
Carrick, Kelsi Nadine
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Laura B Field, Thesis Supervisor
  • James Alan Miles, Honors Advisor
Keywords:
  • greek economy
  • event study
  • finance
  • stock market
  • the euro
  • Eurozone
  • European Businesses
Abstract:
With all of the press and articles about the failing of the Greek economy, it is important as business people to keep track of how these events are affecting actual businesses. This study looks at specific events having to do with the Greek economy. It then looks at how the stocks of European companies within the Eurozone fluctuated on the days that these events were announced. The study was able to point out what types of events most affect the Eurozone companies. It also took a brief look at how Eurozone companies were affected vs. European countries not in the Eurozone. It surprisingly found that non-Eurozone companies reacted similarly to companies within the Eurozone. When doing business in other countries, it will be important to keep track of the news having to do with that country so that you can prepare for times when your stock might fluctuate. This also shows how interconnected the countries within Europe are. This study will be of value for anyone looking to do business within Europe in the upcoming years.