Stock market development and nexus of market liquidity: The case of Fiji

2020 ◽  
Author(s):  
Candauda Arachchige Saliya
Keyword(s):  
Stock Market ◽  
Market Liquidity ◽  
Market Development ◽  
Stock Market Development

scholarly journals Institutional and Macroeconomic Determinants of Stock Market Development in Mena Region: New Results From a Panel Data Analysis

2010 ◽  
Author(s):  
Mondher Cherif ◽  
Kaouthar Gazdar
Keyword(s):  
Panel Data ◽  
Stock Market ◽  
Institutional Environment ◽  
Panel Data Analysis ◽  
Risk Index ◽  
Market Liquidity ◽  
Market Development ◽  
Mena Region ◽  
Stock Market Development ◽  
Mena Countries

This paper provides new evidence on the influence of macroeconomic environment and institutional quality on stock market development, using data from 14 MENA countries over the period of 1990-2007. Using both panel data and instrumental variable techniques, we found that income level, saving rate, stock market liquidity, and interest rate influence stock market development with the expected theoretical signs. Our results also showed that the banking and the stock market sectors are complementary instead of being substitutes. We found that the institutional environment as captured by a composite policy risk index does not appear to be a driving force for the stock market capitalization in the region. Our last results are robust to different specifications and empirical techniques.

scholarly journals IMPACT OF STOCK MARKET DEVELOPMENT ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE

Globus ◽  
2020 ◽  
Author(s):  
T.M. Aliyev
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Granger Causality Test ◽  
Market Liquidity ◽  
Market Development ◽  
Causality Test ◽  
Stock Market Development ◽  
Oil Sector

Development of non-oil sector of Azerbaijan was always one of the main priorities of the government. Oil sector of the economy was well developed since Azerbaijan got its independence, but in order to use the oil source more effectively it was determined to diversify the funds into non-oil sector of the economy, which in the end gave huge boost to most industries of the economy and led to increase of foreign direct investment. However, another source of the foreign direct investment and investor attraction – stock markets, were not developed and organized properly up until 1998, which was mainly due to outdated procedures left from USSR, absence of principles, methodology and understanding of how stock market can play huge role in expansion of economy and attraction of foreign investment. Nowadays, Azerbaijan has all possibilities to widen the stock market, enable easy way of increasing number of small businesses, startups and open the doors for them to global economy and lead to speedy expansion of the businesses. This research analyses the possible relationship between stock market development and economic growth, in order to predict possibility of positive impact of stock market on economic growth, overall social economic welfare of the country and business environment. For the purposes of the research, statistical figures of the country`s main economic indexes were collected: gross domestic product value, foreign direct investment value, stock market liquidity and turnover values, which were then analyzed and tested on various levels of cointegration test, Granger Causality test, vector error correction model and etc. All the analysis were done on statistical software Stata 11 based on figures of 1998-2016. The outcome of the Johansen-Julius shows existence of cointegration and by that VECM test proves relationship between stock market and economic growth in long run, while Wald Test confirms correction of this growth in short term by given explanatory variables. Hence, Granger causality test is conducted further, which determines bidirectional relationship between 3 variables: foreign direct investment, GDP and LIQ (stock market liquidity level). Based on the outcome of the analysis, study concludes that expansion of stock market and increase in foreign direct investment will have chain effect which leads to economic growth and social welfare in Azerbaijan.

Determinants of Stock Market Development in Southeast Asian Countries

2012 ◽  
pp. 101-112 ◽  
Author(s):  
Phan Dinh Nguyen ◽  
Hanh Vo Thi Ha
Keyword(s):  
Stock Market ◽  
Southeast Asian ◽  
Market Liquidity ◽  
Market Development ◽  
Asian Countries ◽  
Stock Market Development ◽  
Market Capitalization ◽  
Negative Effect ◽  
Southeast Asian Countries ◽  
Macroeconomic Stability

This paper examines the determinants of stock market development in Southeast Asian countries. Our findings show that income growth rate, saving rate, financial development, stock market liquidity, and macroeconomic stability are the main determinants of market capitalization. Meanwhile macroeconomic stability meas- ured by the change in inflation and the financial crisis have had a negative effect on market capitalization, other variales have a potivive effect.

scholarly journals The Role of Stock Market Development in Influencing the Firms Performance: A Study Based on Pakistan Stock Market

2018 ◽  
Vol 10 (12) ◽  
pp. 104
Author(s):  
Sophee Sulong ◽  
Qasim Saleem ◽  
Zeeshan Ahmed
Keyword(s):  
Firm Performance ◽  
Stock Market ◽  
Developing Economies ◽  
Market Liquidity ◽  
Market Volatility ◽  
Market Development ◽  
Stock Market Volatility ◽  
Stock Market Development ◽  
Stock Market Liquidity

The study aims to examine the role of stock market development in influencing the performance of non financial firms listed on Pakistan Stock Exchange from 2001 to 2017. Stock market development is a foremost issue of debate nowadays in emerging and developing economies. The theories and empirical studies strongly refer that stock market development is a tool to mobilize the savings and investment to promote the industrialization and firms performance. This study is an effort to establish the empirical relationship between stock market development and firm’s performance. Three indicators of stock market development like stock market volatility,stock market liquidity and stock market liquidity are used for assessing the book and market performance of firms. For this purpose two-step system Generalized Method of Moments (GMM) estimator was employed in a dynamic panel model for empirical testing of hypothesis. The findings indicates that stock market volatility is a significant factor which which attempts to decrease the firm performance. On the other hand, stock market capitalization and stock market liquidity significantly causes the increase in firm firm performance.

scholarly journals Determinants of stock market development: The case of developing countries and Vietnam

2017 ◽  
Vol 24 (01) ◽  
pp. 32-53
Author(s):  
Thanh Su Dinh ◽  
Hoai Bui Thi Mai ◽  
Bon Nguyen Van
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Stock Market ◽  
Money Supply ◽  
Rule Of Law ◽  
Market Liquidity ◽  
Market Development ◽  
Stock Market Development ◽  
Government Effectiveness ◽  
Domestic Credit

Stock market is a key channel to the mobilization of long-term capi-tal in an economy, and determinants of stock market development in developing countries are still undecided. This paper aims to inves-tigate these determinants in Vietnam and other developing countries, whose differences are also pointed out by applying two-way Gener-alized Method of Moments to the panel data of 36 developing countries over the period of 2003–2014. Our findings are intriguing. First, in developing countries economic growth, domestic credit, and stock market liquidity are positive determinants of the development of stock market. While the effect of money supply is negative, insti-tutional factors such as government effectiveness and rule of law have significantly positive impacts, in contrast to corruption control and political stability (whose impacts are significant and negative). Second, regarding the development of the stock market in Vietnam, the effects of such macroeconomic factors as economic growth, domestic investment, foreign direct investment, domestic credit, broad money supply, stock market liquidity, and inflation are signif-icant and negative, whereas those of all institution variables, includ-ing control of corruption, government effectiveness, political stabil-ity, regulatory quality, rule of law, and voice and accountability, are significant and positive. This implies that well-established institutions are crucial for promoting a demand for stocks and stock market performance in Vietnam.

The Determinants of Stock Market Development and Liquidity in Capital Markets

2017 ◽  
pp. 141-155
Author(s):  
Sarah Newton ◽  
Ingrid O'Connor
Keyword(s):  
Stock Market ◽  
Capital Markets ◽  
Banking Sector ◽  
East Asian ◽  
Commercial Banking ◽  
Market Liquidity ◽  
Market Development ◽  
Stock Market Development ◽  
Extant Literature ◽  
Efficient Markets Hypothesis

“At the early stages of its establishment the stock market is a complement rather than substitute for the banking sector. Developing the banking sector can promote stock market development as demonstrated by the experiences of many East Asian countries. However, when stock markets are sufficiently developed they tend to compete with the banking sector as shown by findings.” How does commercial banking impact investment activities in capital markets – and particularly developed capital markets? Is it true then that in certain economies, the banking sector serves as a complementary component of the financial system – up till a stage where it begins to compete with the securities sector? As well as investigating these observations, this chapter is aimed at investigating the validity of Efficient Markets Hypothesis and Efficient Capital Markets Hypothesis in emerging economies – as contrasted with advanced market economies. In so doing, it aims to contribute to the extant literature on stock market liquidity and liquidity in capital markets.

scholarly journals Correlates of Stock Market Development and Economic Growth: A Confirmatory Study from Ghana

2022 ◽  
Vol 14 (3) ◽  
pp. 1
Author(s):  
Edward Alabie Borteye ◽  
Williams Kwasi Peprah
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Positive Association ◽  
Market Liquidity ◽  
Market Development ◽  
Stock Market Development ◽  
The Relationship

The study confirms the debate on whether stock market development correlates to economic growth. The dimensions used for the stock market development consisted of market liquidity, size, and capitalization. Economic growth was represented by the real gross domestic product (GDP) growth rate. Based on secondary data obtained from the Ghana Stock Exchange (GSE) and Ghana Statistical Service from 2014 to 2018, a correlational research design was adopted to analyze the data with SPSS 20v by using bivariate and regression. The study found that there is a high positive relationship between market liquidity and economic growth, a moderate negative relationship between market size and economic growth, and a moderate positive relationship between market capitalization and economic growth. Also, the stock market development of market liquidity, size, and capitalization predict 95.7 percent of economic growth. The study summarized that there is a high positive association between stock market development and economic growth as a confirmatory revelation, but all the relationship results were not statistically significant. The result points to the casualty of the relationship between stock market development and economic growth. The study recommends that more firms must be encouraged to be listed on GSE to enhance economic growth in Ghana.

The Determinants of Stock Market Development in Emerging Economies

2017 ◽  
pp. 126-140
Author(s):  
Sarah Newton
Keyword(s):  
Stock Market ◽  
Capital Markets ◽  
Value Relevance ◽  
Market Liquidity ◽  
Financial Information ◽  
Market Development ◽  
Shadow Banking ◽  
Stock Market Development ◽  
The Impact ◽  
Financial Regulatory

Results appear to confirm the theory that stock market liquidity impacts and influences the ability of the market to fully reflect information. The impact of the sizes and development of capital markets on users of financial information will also be considered in this chapter – as well as other factors which could have a possible impact on the value relevance of accounting information. So will the issue of Shadow Banking and recent financial regulatory reforms which embrace the Dodd Frank legislation – as well as Liikannen, Vickers, Volcker rules and reports.

scholarly journals Macroeconomic Determinants of Stock Market Development in Ghana

2016 ◽  
Vol 3 (2) ◽  
pp. 33 ◽  
Author(s):  
Alexander Owiredu ◽  
Moses Oppong ◽  
Sandra A Asomaning
Keyword(s):  
Stock Market ◽  
Capital Flows ◽  
Real Income ◽  
Market Liquidity ◽  
Market Development ◽  
Private Capital ◽  
Stock Market Development ◽  
Private Capital Flows ◽  
Domestic Savings ◽  
Macroeconomic Stability

Financial systems have been found to have a positive influence on the economic development of most countries. The stock market, which is also a component of the financial system is said to play an integral role in economic growth. This paper examines the macroeconomic determinants of stock market development in Ghana for the period 1992 to 2012 using annual secondary data from Bank of Ghana Quarterly Economic Bulletins, Ghana Statistical Service, Ghana Stock Exchange Market Statistics, the World Bank and IMF’s International Financial Statistics. The macroeconomic indicators such as the real income (GDP per capita income), domestic saving, stock market liquidity, financial intermediary growth, macroeconomic stability (inflation) and private capital flows with stock market capitalization used as a proxy for the study were collected and used for the analysis. These variables were examined to establish a relationship with stock market developments based on a linear regression model.The regression analysis found stock market liquidity to be statistically significant to stock market developments as opposed to the other determinants (such as macroeconomic stability (inflation) real income and domestic savings and private capital flows) which were found to be non-significant. This result suggests that macroeconomic stability (inflation), real income, domestic savings and private capital flows proved not to have any significant impact on stock market development, since their regression coefficients were not statically significant at the 5% level of significance.

scholarly journals Ownership concentration of corporations and the level of stock market development

2021 ◽  
Vol 5 (3) ◽  
pp. 1-9
Author(s):  
Olha Rudenok ◽  
Oleksandra Laktionova ◽  
Vasyl Orlov
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Financial Services ◽  
Inverse Relationship ◽  
Market Liquidity ◽  
Ownership Concentration ◽  
Market Development ◽  
General Description ◽  
Financial Systems ◽  
Stock Market Development

Introduction. The ownership structure affects the stock market liquidity. In turn, stock markets are a key lever to ensure the efficient functioning and development of the country's economy as a whole. Recently, the widespread use of securities market instruments has become of paramount importance due to the limited opportunities for self-financing of enterprises and the shortage of external sources of financing. The performance of the stock market of its functions is largely determined by its characteristics, the implementation of which leads to positive structural changes in the economy. Aim and tasks. The main purpose of the article is to determine the correlation between the ownership concentration of corporations and the level of stock market development in Ukraine and the world. Results. The comprehensive characteristics of financial systems are characterized by the measurement of four categories for one of the key components of the financial sector, namely financial markets. Such categories include the depth of the financial market, the level of use of financial markets among individuals, the efficiency of financial markets in the provision of financial services, and the volatility of financial markets. A general description of the development of financial markets is given, it is determined that developing financial systems tend to be less deep as well as somewhat less efficient, their access and stability are on par with those of developed countries. The article shows the results of correlation-regression analysis between ownership concentration and the above categories, taking into account data from different countries. Conclusions. To determine the depth of financial markets, the article used the capitalization of the stock market as a percentage of GDP. Increasing the level of concentration of ownership leads to a decrease in this indicator. The inverse relationship between ownership concentration and characteristics of access to financial services has been confirmed. To analyze the efficiency of financial markets, this paper uses the ratio of the total value of traded shares to the average value of market capitalization for the analyzed period. The inverse relationship between ownership concentration and characteristics of efficiency has been also confirmed. Stability has a particularly low correlation with the other three characteristics. As a result, the direct relationship between ownership concentration and characteristics of financial markets stability has been confirmed.

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