scholarly journals REACTION OF ISLAMIC STOCK MARKET TO MACROECONOMIC VARIABLES: A STUDY OF INDIA AND INDONESIA

2021 ◽  
Vol 7 (1) ◽  
pp. 148
Author(s):  
Mohammad Irfan ◽  
Salina Kassim ◽  
Sonali Dhimmar ◽  
Mohd Zahid ◽  
Nasrul Fahmi Zaki Fuadi
Keyword(s):  
Stock Market ◽  
Regression Model ◽  
Bilateral Trade ◽  
Stock Exchange ◽  
Random Effect ◽  
Suitable Model ◽  
Economic Activities ◽  
Macroeconomic Variables ◽  
Effect Regression ◽  
The Impact

India and Indonesia are among the world-largest democracies, having a strong international presence through involvement in various economic and intergovernmental organizations such as in the E7 countries and G20 countries groups. This study aims to identify the impact of macroeconomic variables on the Islamic stock markets of India and Indonesia. Two Islamic stock market indices are considered: the Indian Bombay Stock Exchange (BSE) Shariah Index and the Indonesian Jakarta Islamic Index (JII). At the same time, the macroeconomic variables are foreign direct investment (FDI), import, export, gross domestic product (GDP), broad money (M3), and exchange rate (ER). The study adopts panel regression analysis on yearly data covering the period from 2011 to 2020. The pooled OLS regression model, fixed effect regression model (FEM), and random effect regression model (REM) have been employed. With the REM model being suggested as the most suitable model through the Hausman test, the results suggest that FDI, export, GDP, and ER have shown positive and statistically significant influence on both the BSE Shariah and JII. It is also shown that the macroeconomic variables of India and Indonesia are heterogeneities in nature and having mean distribution effects. The study’s findings suggest that increasing the possibilities of bilateral trade and investment in the sectors such as health and pharmaceuticals, automotive components, information technology, agro products, and tourism between India and Indonesia will go a long way. It is expediting greater economic activities among these two countries.

scholarly journals Impact of Accounting Ratios on Stock Market Price of Listed companies in Colombo Stock Exchange

2021 ◽  
Author(s):  
Chandrasegaran Larojan
Keyword(s):  
Regression Analysis ◽  
Stock Market ◽  
Stock Exchange ◽  
Pearson Correlation ◽  
Random Effect ◽  
Market Price ◽  
Fixed Effect ◽  
Effect Regression ◽  
The Impact ◽  
Accounting Ratios

This study investigates the impact of accounting ratios on stock market price of top twenty companies based on the highest market capitalization listed in the Colombo Stock Exchange (CSE). The objectives of this study were to examine the impact of Earnings per Share (EPS) on stock market price; to examine the impact of Dividend per Share (DPS) on stock market price, to examine the impact of Price Earnings ratio (PE) on stock market price and to examine the impact of Market to Book ratio (MB) on stock market price. The panel data was collected from the top twenty companies for the period of five years from 2015 to 2019. EPS, DPS, PE and MB ratios were used as the proxies for the independent variables and stock price was used as the proxy for the dependent variable for this study. In order to perform the inferential analysis Pearson correlation analysis, panel regression with fixed effect, random effect and pooled linear regression were used. Hausman test was adopted in order to choose either random effect regression or fixed effect regression. According to pooled regression analysis, EPS, DPS and PE ratios had positive significant impact on stock market price. MB ratio had a negative significant impact on stock market price. According to fixed effect regression analysis, EPS, PE and MB ratios had positive insignificant impact on stock market price whereas DPS had a positive significant impact on stock market price. This study offers an insight to the potential investors to make the rational investment decisions in the stock market.

scholarly journals Impact of Accounting Ratios on Stock Market Price of Listed companies in Colombo Stock Exchange

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Chandrasegaran Larojan ◽  
Keyword(s):  
Regression Analysis ◽  
Stock Market ◽  
Stock Exchange ◽  
Pearson Correlation ◽  
Random Effect ◽  
Market Price ◽  
Fixed Effect ◽  
Effect Regression ◽  
The Impact ◽  
Accounting Ratios

This study investigates the impact of accounting ratios on stock market price of top twenty companies based on the highest market capitalization listed in the Colombo Stock Exchange (CSE). The objectives of this study were to examine the impact of Earnings per Share (EPS) on stock market price; to examine the impact of Dividend per Share (DPS) on stock market price, to examine the impact of Price Earnings ratio (PE) on stock market price and to examine the impact of Market to Book ratio (MB) on stock market price. The panel data was collected from the top twenty companies for the period of five years from 2015 to 2019. EPS, DPS, PE and MB ratios were used as the proxies for the independent variables and stock price was used as the proxy for the dependent variable for this study. In order to perform the inferential analysis Pearson correlation analysis, panel regression with fixed effect, random effect and pooled linear regression were used. Hausman test was adopted in order to choose either random effect regression or fixed effect regression. According to pooled regression analysis, EPS, DPS and PE ratios had positive significant impact on stock market price. MB ratio had a negative significant impact on stock market price. According to fixed effect regression analysis, EPS, PE and MB ratios had positive insignificant impact on stock market price whereas DPS had a positive significant impact on stock market price. This study offers an insight to the potential investors to make the rational investment decisions in the stock market.

scholarly journals Impact of Covid-19 in Bangladesh Stock Market

2020 ◽  
Vol 4 (2) ◽  
pp. 22-23
Author(s):  
Sunjida Haque ◽  
Tanbir Ahmed Chowdhury
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Stock Exchange ◽  
Potential Consequence ◽  
Economic Activities ◽  
Market Data ◽  
Policy Interventions ◽  
The World ◽  
Before And After ◽  
The Impact

The world's big economies are roiled and going under a devastating threat amid the impact of the COVID-19 pandemic. No country will be safe as this virus will eventually outbreak everywhere, regardless of how countries prepare to avoid it. The economic ramification as well as the stock market crisis will be uncertain due to the extended suspension of economic activities in almost every country. No wonder, the clattered stock markets of Bangladesh which have already got the adjective of “the worst stock market in the world” because of inefficient and irrational fluctuations in previous years will experience a colossal crisis due to the pandemic. The article provides an investigation on comparable analysis of the impact on stock markets of Bangladesh, Dhaka stock exchange, and Chittagong stock exchange, before and after the pandemic situation with current market data. We also examine the potential consequence of policy interventions to the market and the investors during a pandemic.

scholarly journals The Impact Of Macroeconomic Variables On Stock Market — Empirical Evidence On Karachi Stock Exchange By Using ARDL Model

2011 ◽  
Vol 3 (2) ◽  
pp. 125-142
Author(s):  
Adnan Javed ◽  
Muhammad Rafiq ◽  
Sarfaraz Khan ◽  
Muhammad Mohsin Khan
Keyword(s):  
Stock Market ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Ardl Model ◽  
Macroeconomic Variables ◽  
The Impact

scholarly journals The relationship between intellectual capital and firm performance

2017 ◽  
Vol 1 (1) ◽  
pp. 32-41 ◽  
Author(s):  
Amina Mohamed Buallay
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
High Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Random Effect ◽  
Listed Firms ◽  
Effect Regression ◽  
The Impact ◽  
The Relationship

This study aimed to measure the impact of intellectual capital on firm performance of listed firms in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is 489 observations from 171 listed firms. The study independent variable is Intellectual Capital components (HCE, SCE and CEE). The dependent variable is firm performance which measured using ROA, ROE and Tobin’s Q. The study also utilized five control variables in order to help measure the relationship between Intellectual Capital and Firm Performance. In conclusion, the study found that the Intellectual Capital level tends to be higher with firms that have high performance. However, there is variation in the level across the sectors. Random effect regression model was incorporated; the results revealed that there is no significant impact of Intellectual Capital on firm’s operational performance (ROA). However, there is the significant positive impact of Human capital on financial performance (ROE). Additionally, the study concluded that there is the negative significant impact on structural capital efficiency and positive significant impact on Capital Employed Efficiency on firms’ market performance (TQ). These results are expected to broaden the understanding of IC and its impact on firms’ performance in GCC economies in general and specifically in Saudi economic. Moreover, it will be useful for GCC firms to place their priorities and financial plans for effective and efficient use of Intellectual Capital.

Empirical Relationship Between Macroeconomic Variables and Stock Market: Evidence from India

2021 ◽  
pp. 0258042X2110531
Author(s):  
Miklesh Prasad Yadav ◽  
Aastha Khera ◽  
Nandita Mishra
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Empirical Relationship ◽  
Market Price ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Johansen Cointegration ◽  
Short Run ◽  
Indian Stock Market ◽  
The Impact

This study investigates the relationship between the Indian stock market price behaviour and macroeconomic variables. The proxy for the Indian stock market is the BSESENSEX while Foreign Reserve, Exchange Rate (Indian vs. US Dollar) and CPI are proxies for the macroeconomic variables. The Johansen Cointegration Test and the Vector Error Correction Model (VECM) on monthly data collected from websites of Reserve Bank of India and Bombay Stock Exchange within the time period of January 2000 and February 2020 have been applied. We observe a contradiction between the results of trace statistics and the maximal eigenvalue of the Johansen Cointegration. The -trace statistics of cointegration allude to the long-run association between the Indian stock market and its constituent macroeconomic variables. The VECM is then applied to examine the long-run and short-run causalities and the results reveal the same. This study has profound implications for investors to diversify their portfolio, considering the impact of the constituent selected macroeconomic variables in the short run and long run. JEL Codes: B22, J11, R53

scholarly journals The Impact of Macroeconomic Factors on Stock Market: An Evidence from China and Pakistan

2020 ◽  
pp. 1-26
Author(s):  
Isbat Alam ◽  
Muhammad Mohsin ◽  
Khalid Latif ◽  
Muhammad Zia-ur -Rehman
Keyword(s):  
Stock Market ◽  
Time Series Data ◽  
Developing Economies ◽  
Stock Exchange ◽  
Series Data ◽  
Foreign Direct Investments ◽  
Stock Market Returns ◽  
Macroeconomic Variables ◽  
The Government ◽  
The Impact

Silk Road is an ancient strategy of economic and trade routes development networks between emerging and developing economies (China & Pakistan). The main purpose of this research is to empirical inspect the association that exists among the China stock exchange (SSE), Pakistan Stock Exchange (KSE-100) with macroeconomic variables (Gross Domestic Product, Balance of Trade, Foreign Direct Investments, Lending interest rate, and Money Supply). The annual time series data from 1995 to 2019 used to find out the results. Macroeconomic variables have an essential role in any changes in every economy. Any unexpected variations amongst these variables influence the economy in several ways. Multiple regression techniques were analyzed and examine for the significance of data to approximate the probable impacts of variables on stock market prices. Breusch Godfrey Serial Correlation with heteroskedasticity assessment is utilized to investigate the correctness as well as residual normality of series data. The finding of this study exposed that GDP is negative significant 10% with SSE and 1% at level with KSE, FDI is insignificant with SSE. negative significant 10% at level with KSE and the result of BOT shows positive significant 5% at level with SSE while insignificant with KSE, M2 is significant 5% at level with SSE but insignificant with KSE and LI are shown statistically significant 1% at level with SSE While positive significant 10% with KSE. It is determined that it is significant and an insignificant relationship among the variables with both stock market returns. The financial analyst, policymaker appreciate these findings, investors, shareholder, stock exchange editors, security exchange supervisors as well as for the Government.                                                                                          

Disinvestment in Indian central public sector enterprises: a performance improvement measure

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Priya Mandiratta ◽  
G.S. Bhalla
Keyword(s):  
Public Sector ◽  
Stock Market ◽  
Stock Exchange ◽  
Random Effect ◽  
Market Mechanism ◽  
Rank Test ◽  
Net Income ◽  
Content Type ◽  
Negative Results ◽  
The Impact

PurposeThe purpose of this study is to represent an attempt to empirically capture the impact of disinvestment on the financial and operating performance of 26 Bombay Stock Exchange (BSE) listed central public sector enterprises (CPSEs) in India which got divested through stock market mechanism during the time period of 2000–2014.Design/methodology/approachThrough ratio analysis different ratios such as return on assets, return on equity, net income efficiency, debt equity, dividend payout and employment levels have been computed. Pre- and post disinvestment performance of these firms is examined through Wilcoxon signed-rank test. The present research endeavors to examine the impact of disinvestment through random effect panel data models in order to control the effect of other firm specific variables.FindingsThe overall results of the study indicate statistically significant fall in profitability ratios. The empirical results have not witnessed positive effect of disinvestment on the profitability of the CPSEs; rather, this effect has found to be negative. The possible reasons behind these negative results could be poor pre disinvestment financial health of CPSEs, negative rate of return on capital employed by PSEs and inefficiency which need to be tested empirically by future researchers.Originality/valueThe fact that government-owned firms are typically less proficient or at least less gainful than private-owned firms is widely hypothesized. Therefore, the disinvestment policy aims at dropping the participation of the public sector in the economic actions of the country in order to support the private sector. The present study is a first of its kind to study the impact of disinvestment on the profitability of the firms, which got divested through stock market mechanism since the year 2000 by applying both univariate and multivariate analysis.

Do Indian stock market sentiments impact contemporaneous returns?

2018 ◽  
Vol 7 (3) ◽  
pp. 332-346
Author(s):  
Divya Aggarwal ◽  
Pitabas Mohanty
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Temporal Dynamics ◽  
Stock Exchange ◽  
Principal Component ◽  
Stock Index ◽  
Content Type ◽  
Investor Sentiments ◽  
Indian Stock Market ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of Indian investor sentiments on contemporaneous stock returns of Bombay Stock Exchange, National Stock Exchange and various sectoral indices in India by developing a sentiment index. Design/methodology/approach The study uses principal component analysis to develop a sentiment index as a proxy for Indian stock market sentiments over a time frame from April 1996 to January 2017. It uses an exploratory approach to identify relevant proxies in building a sentiment index using indirect market measures and macro variables of Indian and US markets. Findings The study finds that there is a significant positive correlation between the sentiment index and stock index returns. Sectors which are more dependent on institutional fund flows show a significant impact of the change in sentiments on their respective sectoral indices. Research limitations/implications The study has used data at a monthly frequency. Analysing higher frequency data can explain short-term temporal dynamics between sentiments and returns better. Further studies can be done to explore whether sentiments can be used to predict stock returns. Practical implications The results imply that one can develop profitable trading strategies by investing in sectors like metals and capital goods, which are more susceptible to generate positive returns when the sentiment index is high. Originality/value The study supplements the existing literature on the impact of investor sentiments on contemporaneous stock returns in the context of a developing market. It identifies relevant proxies of investor sentiments for the Indian stock market.

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