Rolls-Royce is a British automobile company that was established in 1884 by Henry Royce (Rolls-Royce, 2021). The company deals with a variety of products and services, including civil aerospace, defence and power system, nuclear and digital academy. According to Reuters (2020), Rolls-Royce has been affected by the coronavirus pandemic and is expecting to raise about $6.5 billion to rebuild its balance sheet, out of which about $3 billion is expected to be collected from shareholders. The company has been closing some of its syndicates due to the imposition of travel bans by different countries across the world (Rolls-Royce, 2021).

Research Purpose:

Impact of the coronavirus pandemic on the downfall of Rolls-Royce stock price.

Scope

The study will investigate the downfall of Rolls-Royce stock price due to coronavirus pandemic. The study will particularly examine whether there is a statistically significant relationship between coronavirus and the downfall of the stock price. To achieve this, the study will compare the market price of Rolls-Royce during the pandemic and previous performances. The research will also identify appropriate theories that can explain the effect of coronavirus pandemic on the stock market. Further, the study will investigate appropriate techniques that can measure changes in stock price and the rationale for their use.

Research Question

Is there a statistically significant relationship between coronavirus and the downfall of Rolls-Royce stock price?

Hypotheses

Null hypothesis (H0): There is a statistically significant relationship between coronavirus and the downfall of Rolls-Royce stock price.
Alternative hypothesis (H1): There is no statistically significant relationship between coronavirus and the downfall of Rolls-Royce stock price.

Significance of the Study

The study will be a valuable addition to the body of literature on the research topic. The research will also be useful in identifying appropriate models to measure the impact of coronavirus on the firm. Further, conducting the study will enable Rolls-Royce company to convince its shareholders to provide financial support to revive the business and justify any financial strategies taken by the board.

Additional Files