Degree Name

MS (Master of Science)

Program

Mathematical Sciences

Date of Award

8-2014

Committee Chair or Co-Chairs

Yali Liu, Ph.D.

Committee Members

Robert Price Jr, Ph.D., Edith Seier, Ph.D.

Abstract

This thesis adopts a survival model to analyze China’s stock market. The data used are the capitalization-weighted stock market index (CSI 300) and the 300 stocks for creating the index. We define the recurrent events using the daily return of the selected stocks and the index. A shared frailty model which incorporates the random effects is then used for analyses since the survival times of individual stocks are correlated. Maximization of penalized likelihood is presented to estimate the parameters in the model. The covariates are selected using the Akaike information criterion (AIC) and the variance inflation factor (VIF) to avoid multicollinearity. The result of analyses show that the general capital, total amount of a stock traded in a day, turnover rate and price book ratio are significant in the shared frailty model for daily stock data.

Document Type

Thesis - unrestricted

Copyright

Copyright by the authors.

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