Increasing global competition has evolved a manufacturing environment which gleans vast product variety, reduced manufacturing lead times, increased quality standards and competitive costs. Simultaneously, with a rising trend toward globalization, these manufacturing environments must be...

This paper analyses how stock returns on the U.S. manufacturing industry respond to raw materials price shock. Using monthly excess return data of the U.S. manufacturing industry and the percentage change of the U.S. raw materials price commodity index from 1960:M2 to 2012:M12, the vector auto...