Nike Stock Essay

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For our final project we chose to analyze Nike Inc.’s stock performance over the past 15 years (year 2000 - 2015). We were interested in what the different variables had an effect on on their stock movement, primarily variables that included competitors, macroeconomic indicators, internal financial measurements, and worldwide sporting events. We weren’t necessarily looking into a problem, but we were trying to see what alters Nike’s stock prices. We did so by running Nike’s stocks against three competitors’: Adidas, Under Armour, and Lululemon. We obtained stock prices for all companies at the end of Nike’s fiscal year, June 30th, to maintain consistency between company data. To look deeper into these stocks, we also changed …show more content…

We then converted the “sheet” into an excel document in order for it to be compatible with SPSS and proceeded to run binary logistic regressions on SPSS. Because we used such a wide variety of variables, we had to slim it down to the ones we found were the most significant. Through our regressions, we found that with a 5% alpha, the only significant variable was percent change in the S&P 500 index.

However, with a 10% alpha, we found that ran on their own, the binary for S&P500 increase or decrease and the binary for Under Armour were also significant:

Since the percentage change in the S&P500 was the most significant result, we proceeded to run a linear regression through excel with Nike’s stock percentage change against it:

Conclusion:
Focusing on our initial 5% alpha binary logistic regression, we found that the only significance of our variables lies within the S&P 500 percent change. The output tells us that as the percentage of the S&P 500 increases one percent, the odds of Nike’s stock increasing increase e^290.420. These regressions struggled because of the fact that we could only obtain data for all the companies since 2008 and many of our variables were found to be insignificant. If we were to do this project again, we would work to find more significant variables as well as data with more years to run longer term

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