scholarly journals What drives DS30 Index amid bourse lockdown decision? An emerging economy perspective

2021 ◽  
Vol 9 (10) ◽  
pp. 2507-2520
Author(s):  
Mohammad Omar Faruq
Keyword(s):  
Stock Market ◽  
Positive Impact ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Macroeconomic Factors ◽  
Negative Relation ◽  
Book To Market Ratio ◽  
The Government ◽  
Key Aspects ◽  
The Impact

This study measures the impact of the COVID-19 pandemic outbreak on the stock market of Bangladesh amid bourse lockdowns. The top 30 blue-chip companies listed in the DS30 Index of the Dhaka Stock Exchange are used as the sample for this study. Panel data regression analysis has been used after performing several diagnostics tests to assess the impact for January to December during the year 2020. The regression model used in the study considers three key aspects, namely COVID-19, firm-specific factors, and macroeconomic variables amid the bourse lockdown. This study finds that daily trend in affected cases, death cases and investors' attention significantly affect the stock market but does not show any negative relation to conclude. The Government imposed lockdown shows a negative relation with the stock market significantly. Firm-specific variables like daily market capitalization and book to market ratio show a significant negative relationship with the stock market. On the other hand, macroeconomic factors have a significantly positive impact on the stock market amid bourse lockdowns. This study assesses the performance of the Bangladesh stock market by use of DS30 Index listed firms during the COVID-19 pandemic in response to the Government imposed bourse lockdown. This study provides unique insights into how the Bangladesh stock market reacted during the pandemic, along with a rare bourse lockdown decision.  

Implications of Government Borrowing for Corporate Financing in Emerging Economies: A Crowding Out Kuznets Curve

2020 ◽  
Vol 23 (02) ◽  
pp. 2050017 ◽  
Author(s):  
Muhammad Ali Nasir ◽  
Toan Luu Duc Huynh ◽  
Quynh Thi Nhu Do ◽  
Cuc Thi Nguyen ◽  
Quynh Thi Tran
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Kuznets Curve ◽  
Crowding Out ◽  
Macroeconomic Factors ◽  
Corporate Financing ◽  
Financing Decisions ◽  
The Government

This paper investigates the implications of government borrowing for corporate financing and capital structure of the firms. In doing so, we explore the effects of government debt, macroeconomic and firm-specific factors on firm’s choice of financing and capital structure. We draw on the 10-year data (2007–2017) of 225 non-financial firms listed on the Ho Chi Minh Stock Exchange (HoSE) and employ the system Generalized Method of Moments (system-GMM) for estimation. Our key findings suggest that the government borrowing and debt financing for the Vietnamese listed companies have a negative relationship. Specifically, the short-term corporate leverage structure is influenced more strongly than the long-term leverage structure. We also define the threshold for the association between government borrowing and corporate financing decisions by capturing a U-shaped relationship i.e., Crowding out Kuznets Curve (CKC). Furthermore, macroeconomic factors also show a statistically significant impact on corporate financing decisions. Our findings have profound implications for the fiscal and public policymakers, investors as well as corporate finance managers and firms.

scholarly journals A cause and effect relationship between FIIs, DIIs and stock market returns in India: pre- and post-demonetization analysis

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Narayan Parab ◽  
Y. V. Reddy
Keyword(s):  
Stock Market ◽  
Negative Impact ◽  
Negative Relationship ◽  
Market Returns ◽  
Institutional Investment ◽  
Stock Market Returns ◽  
Market Sentiment ◽  
Indian Economy ◽  
The Government ◽  
The Impact

Abstract In one of the most historic decisions in the Indian economy, the Government of India demonetized its two highest currency notes (Rs. 500 and Rs. 1000) on November 8, 2016. The Indian stock market does not only consist of domestic investors; however, it does attract a large pool of foreign investors. The present study, considering the significance of demonetization in Indian economy, attempted to examine the association between foreign institutional investment (FII), domestic institutional investment (DII) and stock market returns taking into account a period of 686 days from June 11, 2015, to March 27, 2018, i.e., 343 days pre- and post-demonetization. The study made use of various statistical techniques such as summary statistics, augmented Dickey–Fuller test, correlation analysis and regression analysis. The results indicate a negative relationship of FIIs and DIIs with Nifty 50 Index Returns prior to demonetization; however, such a relationship was noticed to be positive post-demonetization. The present study did not evidence a significant impact of demonetization on FIIs and DIIs, but a significant negative impact was noticed in the case of Nifty 50 Index and various sectoral indices post-demonetization. Nifty Realty sector was found to be severely affected because of demonetization. The study will help the government in understanding the impact of demonetization on foreign and domestic institutional investors, various sectoral indices and evaluate market sentiment post-demonetization and therefore frame necessary policies. Also, the information provided in present study will help various stock market participants.

scholarly journals Quantitative relationship between corruption and development of the Tunisian stock market

2018 ◽  
Vol 7 (2) ◽  
pp. 39-47
Author(s):  
Ibtissem Missaoui ◽  
Mohsen Brahmi ◽  
Jaleleddine BenRajeb
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Quantitative Relationship ◽  
Stock Market Index ◽  
Private Companies ◽  
Stock Market Development ◽  
Market Index ◽  
The Government ◽  
The Impact ◽  
Positive Effect

The aim of this article is to seek especially the impact of corruption on the bond and stock market development. For the methodology/approach, the authors analyze a sample of 20 listed Tunisian firms from the Stock Exchange and Financial market, covering the period from 2006 to 2016 by using pooling cross section techniques. The results find a significant positive effect of the level of corruption on the stock market index and the logarithm of capitalization. This is consistent with the view that corruption accelerates the economic growth by speeding up transactions and allowing private companies to overcome the inefficiencies imposed by the government. Furthermore, the results find a negative association is not significant with the dependent variable of traded value as a percentage of the number of listed companies.

scholarly journals Do the stocks' returns and volatility matter under the COVID-19 pandemic? A Case Study of Pakistan Stock Exchange

2021 ◽  
Vol 3 (1) ◽  
pp. 13-26
Author(s):  
Muhammad Saeed ◽  
Ijaz Ahmad ◽  
Muhammad Ahmad Usman
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Dummy Variable ◽  
The World ◽  
The Government ◽  
The Impact ◽  
Near Future

The catastrophe that the world is now facing in the form of COVID-19, has affected most of the world economies and financial markets as a result of lockdown, travelling restrictions, and social distances. The present study attempted to investigate the effects of COVID-19 on the stock returns of the Pakistan Stock Exchange. The data employed comprises daily prices of Pakistan Stock Exchange, the daily value of exchange rate over the period 01 January 2011 to 30 April 2021, and a dummy variable for COVID-19 which takes 1 for the period during COVID-19 and 0 for the period before. The data were sourced from the Karachi Stock Exchange website, National Institute of Health Sciences Pakistan, and State Bank of Pakistan. We applied the autoregressive conditional heteroskedastic (ARCH) and the associate generalized autoregressive conditionally heteroskedastic (GARCH) approaches to analyze the impact. Our findings revealed that a negative relationship exists between our variables of interest with mean returns and a positive relationship with the volatility of the KSE-100 index. This implies that the COVID-19 pandemic has affected the stock price and increases the volatility of the KSE-100 index, and further affects the financial system. The study recommends that an urgent and powerful response is needed on the part of the government,including strong measures to prevent a severe stock market crash in Pakistan in near future.

scholarly journals Macroeconomic Factors as a Predictor of Stock Market: Empirical Evidences from India, U.S. and U.K.

2019 ◽  
Vol 8 (2S10) ◽  
pp. 743-751
Keyword(s):  
New York ◽  
Stock Market ◽  
Stock Exchange ◽  
Consumer Price Index ◽  
Data Sets ◽  
Causality Test ◽  
Monthly Basis ◽  
Macroeconomic Factors ◽  
Long Run ◽  
The Impact

The study investigated the impact of Macroeconomic variables such as: Gross Domestic Product (GDP), The Index of Industrial Production (IIP), Consumer Price Index (CPI), Foreign-exchange reserves (also called forex reserves or FX reserves), International Crude Price (CP) on selected stock market, namely Indian Stock Market (S&P BSE SENSEX (BSE 30) index, S&P CNX Nifty index (NIFTY 50), London Stock Exchange (Financial Times Stock Exchange 100 Index (FTSE 100) and New York Stock Exchange Dow Jones Industrial Average (Dow 30). The data sets of all variables have been considered from April, 2001 to March, 2018 on a monthly basis. The study reveals long run relationship among the variables and the results of Granger Causality test reveals unidirectional, bilateral relation (Feedback) and exogeneity (Independence) among the variables.

scholarly journals Corruption and stock market development in EAP countries

2020 ◽  
Vol 17 (2) ◽  
pp. 266-276
Author(s):  
Phuong Lai Cao Mai
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Positive Impact ◽  
Economic Benefits ◽  
Data Set ◽  
Macroeconomic Factors ◽  
Market Capitalization ◽  
Developed Stock Markets ◽  
The Impact ◽  
Stock Market Capitalization

Using macroeconomic factors as control variables, this paper examines the impact of corruption on the development of the stock market in East Asia and the Pacific (EAP) from 2008 to 2018. The research model uses GMM techniques to estimate panel data on two sub-sets of data, including five developed markets and seven emerging markets, and a dataset of both market groups. The market capitalization and the stock transaction value relative to GDP represent the development of the stock market, and the corruption control index represents the corruption factor. The empirical results found that corruption has a positive impact on the EAP stock market capitalization with the entire sample data set, which positively affects both size of the market capitalization value and value of stock transactions in underdeveloped markets. However, it is not statistically significant in explaining the development of developed stock markets. Besides, macroeconomic factors such as inflation, interest rates, savings, and credit affect some stock markets at EAP. Compared to previous studies, the article’s results found that corruption affects stock market capitalization and has a positive impact on stock liquidity in underdeveloped stock markets. Corruption affects more underdeveloped stock markets than developed stock markets. This may be due to the implicit relationship of economic benefits between large enterprises and officials in underdeveloped markets.

Psychology of Indian Stock Market: An Evidence of Seasonal Affected Disorder

2020 ◽  
Vol 16 (2) ◽  
pp. 146-156
Author(s):  
Rajdeep Kumar Raut ◽  
Rohit Kumar
Keyword(s):  
Stock Market ◽  
Seasonal Affective Disorder ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Vital Role ◽  
Least Square ◽  
Market Return ◽  
Stock Market Return ◽  
Indian Stock Market ◽  
The Impact

This article examines the association between daylight hours as a proxy for the seasonal affective disorder (SAD) and stock market return. Past studies have documented different decision-making mechanisms induced by investors’ cognition mainly influenced by greed and fear. However, this study appears to be different from evidence where investors’ mood is affected by seasonality, which plays a vital role in risk-taking propensity. Data have been taken from three indexes of Bombay Stock Exchange (BSE), for the period between April 2003 and December 2016. The impact of SAD on stock market return was examined by using naïve ordinary least square (OLS) model. This study reports a negative relationship between daylight hours and pattern of midcap as well as smallcap indexes, which are in alignment with mood maintenance hypothesis (MMH). The result of negative correlation suggests a summer-type SAD, which is an addition to the findings of the existing literature.

The Impact of Treasury Bill Rate and Interest Rate On The Stock Market Returns: Case Of Ghana Stock Exchange

2013 ◽  
Vol 8 (2) ◽  
Author(s):  
Augustine  Addo ◽  
Fidelis Sunzuoye
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Market Returns ◽  
Treasury Bill ◽  
Stock Market Returns ◽  
Long Run ◽  
Ghana Stock Exchange ◽  
The Impact

Several studies have suggested that macroeconomic variables affect Stock market returns using Treasury bill rate as a measure of interest rate. The study examines the joint impact of  interest rates and Treasury bill rate on  stock market returns on Ghana Stock Exchange over the period between January 1995 and December 2011. Using Johansen’s Multivariate Cointegration Model and Vector Error  Correction Model the study establish that there is cointegration between Interest rate, Treasury bill rate and stock market returns indicating long run relationship. On the basis of the Multiple Regression Analysis (OLS) carried out by Eviews 7 program, the results show that Treasury bill rate and interest rate both have a negative relationship with stock market returns but  are not  significant. These results lend support to the idea that interest rate and Treasury bill rate has both  negative  relationship  but  weak predictive  power on stock market returns independently. The study conclude that interest rate and Treasury bill rate jointly impact on stock market returns in the long run. Understanding the effects of both  Treasury bill rate and interest rate dynamics on stock market returns will help investors, fund  and portfolio managers and firms make better investment decisions.

scholarly journals Macroeconomic Determinants of Stock Market Fluctuations: The Case of BIST-100

Economies ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 8 ◽  
Author(s):  
Caner Demir
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Stock Exchange ◽  
Capital Inflows ◽  
Foreign Direct Investments ◽  
Domestic Currency ◽  
Stock Market Index ◽  
Macroeconomic Factors ◽  
Market Index ◽  
The Impact

The purpose of this study is to analyze the impacts of some prominent macroeconomic factors on the Turkish Stock Market index, BIST-100 (Borsa Istanbul-100). For centuries, and mostly since the 20th century, stock markets are at the heart of economies. In our era, the largest economic crises arise from the stock market instabilities and thus, the stock markets are the focus of interest of the economy. Economists, investors, and policymakers try to predict the tendency of share prices, which substantially depend on foreign and domestic macroeconomic factors. Within this purpose, this study tries to investigate the impact of some selected macroeconomic factors on BIST-100 index over the 2003Q1–2017Q4 period. The findings obtained from the quarterly data via the ARDL Bounds Test suggest that economic growth, the relative value of the domestic currency, portfolio investments and foreign direct investments raise the stock market index while interest rate and crude oil prices negatively affect it. The results briefly reveal that the Istanbul Stock Exchange Market needs stronger domestic currency, higher international capital inflows, and lower energy and investment costs.

Impact of statutory regulation and key internal factors on firm’s corporate social responsibility

2019 ◽  
Vol 61 (5/6) ◽  
pp. 517-529
Author(s):  
Ashok Chakraborty
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Positive Impact ◽  
Stock Exchange ◽  
Content Type ◽  
Main Research ◽  
Regulatory Impact ◽  
The Government ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to examine the impact of statutory regulatory order by the government on the degree of corporate social responsibility (CSR) performance and disclosures. It also aims to empirically investigate the relationship of a firm’s key internal and governance factors with CSR performance and disclosures. Design/methodology/approach The study is based on empirical data from all banking firms listed in the Dhaka Stock Exchange (DSE) for a period of 2011-2015. The difference in difference analysis has been used to test the regulatory impact, where content analysis has been performed to find CSR disclosure scores. The multivariate regression analysis has been used to test hypotheses to find impact of firm’s internal factor on CSR disclosures. Findings The analysis and results of the study show that there is no significant impact of statutory regulatory impact on a firm’s level of CSR performance and disclosure. On the other hand, the study has found that board expertizes and board meetings have significant positive impact on firm’s CSR while no significant impact is found for firm networks to influence firm’s CSR disclosures. Research limitations/implications The main research limitation of the study is that it covers all listed firms of the banking industry in Bangladesh. Because of data inconsistency, other industries are not included in the data sample of this study. Originality/value The value of the study lies in its contribution to the empirical investigation of regulatory impact and key internal and governance factors in a developing country perspective, which will add value to the CSR literature.

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