Al akhawayne University

School of Business Administration

Advance Quantitative Methods
GBU4401

Milestone: #2

Ahd Rankou
Youssef El Hadaj
Salim Nadifi

Dr. J.Abrache
Spring 2007

Introduction

Does advertising influence the stock price? We mean by advertisement all the
marketing campaign that comes before the introduction of a company on the Casablanca
stock-exchange. We have noticed from tv, newspapers, and other medias that some
companies, before their introduction into the stock-exchange, do huge marketing campaign
that costs important amount of money. On the other hand, other companies do not advertise;
Our objective from this research is to know if there is enough evidence that the marketing
campaign influence the stock price. To conduct our study, we choose to use two actual
companies in the stock exchange. To do so, we took the CGI (Compagnie generale
immobiliere) and CTM (Companie de transport maroccaine). We chose the CGI because they
did a massive marketing effort and the CTM because they didnt use advertisement.
Data collection is the first step to conduct our study; we will take historical prices of both
companies from the website (http://www.casablanca-bourse.com/). The data that we will use
reflect the performance of the company from its lunch period until it settles down.
Concerning the methodology, we will apply the concepts studied in class. Since we have two
companies, and we want to know either advertisement has an impact on the price, we will
compare two independent populations.

Action Plan :
Our main source of data is historical index prices of both companies.
We gathered the data from the Casablanca stock exchange website (http://www.casablancabourse.com/). Through this information, we intend to use statistical tools to show how the
stock price may fluctuate depending on the advertisements. The results will help companies
that are planning to be introduced in the stock exchange to know whether advertising will help
them to collect more investors;
To conduct our study, we will use the hypothesis testing method for two populations.
Applying chapter 10 concepts (comparing two independent populations).

Hypothesis:
H0 : Advertising does not affects stock prices
H1: Advertising affects stock prices

Expected Conclusion:
After doing our study, companies must be able to know that advertising influences in
increasing the demand of the stock in the IPO (initial price offering) and then increasing the
stock price.

Appendix 1 :
SANCE

04/10/2007

2383.00

15/08/2007

COURS_CLOTUR
E
1266.00

05/10/2007

2385.00

17/08/2007

1531.00

08/10/2007

2470.00

23/08/2007

1719.00

09/10/2007

2540.00

27/08/2007

1931.00

10/10/2007

2530.00

29/08/2007

2168.00

11/10/2007

2610.00

31/08/2007

2265.00

12/10/2007

2640.00

03/09/2007

2400.00

15/10/2007

2705.00

04/09/2007

2544.00

16/10/2007

2630.00

05/09/2007

2696.00

17/10/2007

2552.00

06/09/2007

2565.00

18/10/2007

2602.00

07/09/2007

2523.00

19/10/2007

2590.00

10/09/2007

2517.00

22/10/2007

2583.00

11/09/2007

2441.00

23/10/2007

2582.00

12/09/2007

2300.00

24/10/2007

2570.00

13/09/2007

2345.00

25/10/2007

2580.00

14/09/2007

2485.00

26/10/2007

2620.00

17/09/2007

2525.00

29/10/2007

2636.00

18/09/2007

2446.00

30/10/2007

2578.00

19/09/2007

2430.00

31/10/2007

2450.00

20/09/2007

2423.00

01/11/2007

2495.00

21/09/2007

2380.00

02/11/2007

2540.00

24/09/2007

2347.00

05/11/2007

2580.00

25/09/2007

2370.00

07/11/2007

2529.00

26/09/2007

2400.00

08/11/2007

2495.00

27/09/2007

2440.00

09/11/2007

2487.00

02/10/2007

2390.00

03/10/2007

2398.00

2481.00

Appendix2: CTM

SANCE

COURS_CLOTUR
E

21/06/2007 372.00

14/05/2007 357.00

22/06/2007 372.00

15/05/2007 378.00

25/06/2007 379.00

16/05/2007 399.00

26/06/2007 375.00

17/05/2007 410.00

27/06/2007 363.00

18/05/2007 394.00

28/06/2007 379.00

21/05/2007 407.00

29/06/2007 364.00

22/05/2007 387.00

03/07/2007 367.00

23/05/2007 372.00

05/07/2007 360.00

24/05/2007 372.00

06/07/2007 352.10

25/05/2007 380.00

09/07/2007 354.00

28/05/2007 389.00

10/07/2007 353.00

29/05/2007 372.00

11/07/2007 353.00

30/05/2007 380.00

12/07/2007 350.00

31/05/2007 390.00

13/07/2007 360.00

01/06/2007 390.00

16/07/2007 341.00

04/06/2007 395.00

19/07/2007 350.00

05/06/2007 397.00

20/07/2007 345.00

06/06/2007 390.00

24/07/2007 340.00

07/06/2007 390.00

25/07/2007 350.00

08/06/2007 383.00

26/07/2007 350.00

11/06/2007 390.00

27/07/2007 350.05

12/06/2007 380.00

31/07/2007 360.00

13/06/2007 375.00

01/08/2007 380.00

14/06/2007 380.00

02/08/2007 385.00

15/06/2007 370.00

03/08/2007 382.00

18/06/2007 370.00

06/08/2007 387.90

19/06/2007 370.00

07/08/2007 387.00

20/06/2007 365.00