scholarly journals A Canonical Analysis on the Relationship between Banking Sector and Stock Market Development in Bangladesh

2017 ◽  
Vol 10 (1) ◽  
pp. 167
Author(s):  
Suman Biswas ◽  
Altaf Hossain ◽  
Arnab Kumar Podder ◽  
Md. Nasif Hossain
Keyword(s):  
Correlation Analysis ◽  
Stock Market ◽  
Private Sector ◽  
Canonical Correlation Analysis ◽  
Canonical Correlation ◽  
Banking Sector ◽  
Market Development ◽  
Canonical Variate ◽  
Economic Activities ◽  
Stock Market Development

This study examines the structural dependency between the developments of banking sector and stock market of Bangladesh using canonical correlation analysis. The main objective is to check whether the developments of these two financial sectors independently behave in the economic activities of Bangladesh using monthly data from 2006 to 2015. The development of banking sector is measured by a set of four indicators or variables, private sector credit, total number of branches of scheduled banks, interest rate spread and non-performing loan. Similarly another set of indicators, stock market capitalization, number of listed companies, turnover ratio and stock price volatility are used to explain the development of stock market. The multivariate time series of the two set of indicators are ensured first to be the stationary one. Then the canonical correlation analysis between the two set of indicators show that private sector credit, total No. of branches of scheduled banks are the first set of variables contribute more to construct the first canonical variate of banking sector. Market capitalization and number of listed companies are the second set of variables contribute more to construct the first canonical variate of stock market development. Finally, the correlation between the first pair of canonical variates is 0.293. Since the correlation is positive but not significant, banking and stock market developments do not significantly complement each other. Thus it is concluded that the developments of the two financial systems have been independently running during the period in financing economic activities of Bangladesh from 2006 to 2015.

scholarly journals A Canonical Correlation Analysis of Relationships Between Growth, Compositional Traits and Longevity, Lifetime Productivity and Efficiency in Polish Landrace Sows

2014 ◽  
Vol 14 (2) ◽  
pp. 257-270 ◽  
Author(s):  
Magdalena Sobczyńska ◽  
Tadeusz Blicharski ◽  
Mirosław Tyra
Keyword(s):  
Growth Rate ◽  
Correlation Analysis ◽  
Canonical Correlation Analysis ◽  
Canonical Correlation ◽  
Performance Test ◽  
Selection Index ◽  
Phenotypic Selection ◽  
Backfat Thickness ◽  
Canonical Variate ◽  
Weaned Piglets

Abstract Relationships between performance test traits (growth rate, backfat thickness, loin depth, lean meat percentage, exterior, phenotypic selection index) and longevity traits (length of productive life, number of litters, total number of weaned pigs, number of weaned piglets per year, number of litters per year) in Landrace sows were evaluated using canonical correlation analysis. The data set consisted of 23,012 purebred sows that farrowed from 1994 to 2011 in 161 herds. The first three canonical correlations (0.37, 0.25, 0.07) were highly significant (P<0.0001). Correlations of the first canonical variate with the original measured variables indicated that sows with high values for this variate had lower growth rate (r=-0.31) and loin depth (r=-0.43), greater backfat thickness (r=0.23), as well as being older at birth of their last litter (r=0.98). These sows also had a greater number of litters (r=0.94) and better lifetime efficiency (r=0.61 and r=0.70 for number of weaned piglets per year and number of litters per year, respectively). Canonical loadings for the second canonical function indicate that sows with high values for the second set of variates had high growth rate (r=0.79) and phenotypic selection index (r=0.83), excellent conformation (r=0.62), as well as better efficiency in pig production (r=0.67). The squared multiple correlations show that the first canonical variate of the performance traits is a poor predictor of longevity (0.13) and nearly useless for predicting efficiency traits (0.07). Performance test traits explain 11% of the variance in the variables of longevity and lifetime productivity, whereas dependent variables explain only 3% of the variance in performance test traits. The relationships between performance test data and subsequent lifetime productivity or longevity were significant and unfavourable but low for Polish Landrace population

scholarly journals Analysis of Soil-Vegetation Interrelationships in a South-Southern Secondary Forest of Nigeria

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
D. D. Eni ◽  
A. I. Iwara ◽  
R. A. Offiong
Keyword(s):  
Organic Matter ◽  
Correlation Analysis ◽  
Canonical Correlation Analysis ◽  
State Government ◽  
Canonical Correlation ◽  
Secondary Forest ◽  
Principal Component ◽  
Tree Density ◽  
Tree Size ◽  
Canonical Variate

Soil-vegetation interrelationships in a secondary forest of South-Southern Nigeria were studied using principal component analysis (PCA) and canonical correlation analysis (CCA). The grid system of vegetation sampling was employed to randomly collect vegetation and soil data from fifteen quadrats of 10 m × 10 m. PCA result showed that exchangeable sodium, organic matter, cation exchange capacity, exchangeable calcium, and sand content were the major soil properties sustaining the regenerative capacity and luxuriant characteristics of the secondary forest, while tree size and tree density constituted the main vegetation parameters protecting and enriching the soil for its continuous support to the vegetation after decades of anthropogenic disturbance (food crop cultivation and illegal logging activities) before its acquisition and subsequent preservation by the Cross River State government in 2003. In addition, canonical correlation analysis showed result similar to PCA, as it indicated a pattern of relationship between soil and vegetation. The only retained canonical variate revealed a positive interrelationship between organic matter and tree size as well as an inverse relationship between organic matter and tree density. These extracted soil and vegetation variables are indeed significantly important in explaining soil-vegetation interrelationships in the highly regenerative secondary forest.

scholarly journals The macroeconomic drivers of stock market development: evidence from Hong Kong

2019 ◽  
Vol 12 (2) ◽  
pp. 185-207 ◽  
Author(s):  
Sin-Yu Ho ◽  
Nicholas M. Odhiambo
Keyword(s):  
Hong Kong ◽  
Stock Market ◽  
Inflation Rate ◽  
Banking Sector ◽  
Trade Openness ◽  
Market Development ◽  
Content Type ◽  
Stock Market Development ◽  
Banking Sector Development ◽  
Short Run

Purpose The purpose of this paper is to examine the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3. Specifically, it investigates the impact of banking sector development, economic growth, inflation rate, exchange rate, trade openness and stock market liquidity on stock market development. Design/methodology/approach This paper uses quarterly time-series data covering the period 1992Q4-2016Q3, which have been obtained from various reliable sources. The study uses the autoregressive distributed lag bounds testing procedure to identify both the long- and short-run macroeconomic drivers of stock market development in Hong Kong. Findings We find that banking sector development and economic growth have positive impacts on stock market development, whereas the inflation rate and the exchange rate have negative impacts on stock market development both in the long and short run. In addition, the results show that trade openness has a positive long-run impact but a negative short-run impact on stock market development. Originality/value Despite the phenomenal growth of stock market in Hong Kong, there are, to the best of the authors’ knowledge, no relevant studies on the macroeconomic drivers of stock market development in Hong Kong. Therefore, this paper endeavours to enrich the literature by examining the macroeconomic drivers of stock market development in Hong Kong during the period 1992Q4-2016Q3.

scholarly journals Financial development, openness in financial services trade and economic growth

2019 ◽  
Vol 3 (2) ◽  
pp. 42-65 ◽  
Author(s):  
Rabia Khatun ◽  
Jagadish Prasad Bist
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Financial Development ◽  
Financial Services ◽  
Banking Sector ◽  
Market Development ◽  
Services Trade ◽  
Content Type ◽  
Stock Market Development ◽  
Insurance Sector

Purpose The purpose of this paper is to examine the relationship between financial development, openness in financial services trade and economic growth in BRICS countries for the period 1990–2012. Design/methodology/approach An index for financial development has been constructed using principal component analysis technique by including banking sector development, stock market development, bond market development and insurance sector development. For the robustness of the result, the long-run cointegrating relationship amongst the variables has been analyzed. Findings Overall financial development has a positive and significant impact on economic growth. To take the full advantage of openness in financial services trade, countries need to put more emphasis on the development of their stock markets, bond markets and the insurance sector. The result shows that openness in financial services trade has a positive impact on economic growth when the stock market, bond market and insurance sector are included in the system. Research limitations/implications The policy implication of the findings is that policymakers should focus more on developing all four areas of finance to get the full benefit of the financial system on the process of economic growth. Originality/value The authors have constructed the better indicators of financial development in the case of BRICS economies. Most of the studies in BRICS economies have measured the development of the financial sector as either banking sector development or stock market development. However, the present study includes all four areas of finance (banking sector development, stock market development, insurance sector development and bond market development) into account.

scholarly journals Canonical correlation analysis of the career attitudes and strategies inventory and the adult career concerns inventory

2006 ◽  
Vol 32 (3) ◽  
Author(s):  
Charlene C Lew ◽  
Gideon P De Bruin
Keyword(s):  
Correlation Analysis ◽  
Canonical Correlation Analysis ◽  
Canonical Correlation ◽  
Career Concerns ◽  
Canonical Variate ◽  
Career Attitudes ◽  
Family Commitment ◽  
Adult Career ◽  
Adult Career Concerns Inventory ◽  
High Level

This study investigated the relationships between the scales of the Adult Career Concerns Inventory (ACCI) and those of the Career Attitudes and Strategies Inventory (CASI). The scores of 202 South African adults for the two inventories were subjected to a canonical correlation analysis. Two canonical variates made statistically significant contributions to the explanation of the relationships between the two sets of variables. Inspection of the correlations of the original variables with the first canonical variate suggested that a high level of career concerns in general, as measured by the ACCI, is associated with high levels of career worries, more geographical barriers, a low risk-taking style and a non-dominant interpersonal style, as measured by the CASI. The second canonical variate suggested that concerns with career exploration and advancement of one’s career is associated with low job satisfaction, low family commitment, high work involvement, and a dominant style at work.

scholarly journals BANKING INDUSTRY CONCENTRATION AND NET INTEREST MARGINS (NIMS) IN PAKISTAN

2013 ◽  
Vol 15 (2) ◽  
pp. 384-402 ◽  
Author(s):  
Ijaz Hussain
Keyword(s):  
Stock Market ◽  
Commercial Banks ◽  
Banking Sector ◽  
Operating Cost ◽  
Industry Concentration ◽  
Market Development ◽  
Stock Market Development ◽  
Interest Margins ◽  
The Impact ◽  
Bank Soundness

This paper uses bank level data of 26 commercial banks for the period 2001–2010 to explore determinants of net interest margins of commercial banks of Pakistan. Based on results of this study, past net interest margins, bank soundness, operating cost, industry concentration, relative market share, inflation, real depreciation and industrial growth have statistically significant and positive impact while diversification, change in bank size, lagged liquidity, stock market development have dampening effects on net interest margins. However, impact of ownership, GDP and credit market development is statistically insignificant. Our regression results suggest that stock market development as means of alternative source of finance contributes to reduction in net interest margins while the impact of banking sector development on breaking banking cartels and bringing net interest margins down had been insignificant. Exchange rate adjustments, rate of inflation and growth of the industry also cannot be ignored in management of net interest margins. Incentives for bank executives and managers to ensure efficiency in operating costs, reduction in the premium charged for bank soundness, diversification of bank activities and passing on the scale efficiencies to both depositors and borrowers can also play role to bring interest margins down to accelerate investment and growth in the country.

Do Quality of Governance, Remittance and Financial Development affect Growth?

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Faqeer Muhammad ◽  
Naveed Razaq ◽  
Khair Muhammad ◽  
Rehmat Karim
Keyword(s):  
Stock Market ◽  
Financial Development ◽  
Diagnostic Tests ◽  
Banking Sector ◽  
Market Development ◽  
Stock Market Development ◽  
Quality Of Governance ◽  
The Given

The newly elected government of the Pakistan considered corruption as a main hurdle in long-term development of the country on one hand. On the other hand, it is put emphasis on enhancing remittances to maintain Marco-economic stability in Pakistan. Therefore, the aim of this study is to highlight the effects of remittance, quality of governance and financial development in Pakistan for the time 2000 to 2016 using Ordinary Least Square Method (OLS). The aftermaths of the study has shown the positive influence of remittance, quality of governance and financial development on economic development in Pakistan. Conversely, as expected the sign of inflation is negative with in-significant effect. Furthermore, the present study has categorized financial development into banking sector and stock market development to explore their effects separately. For this purpose, two indicators have chosen for banking sector and two for stock market development. Lastly, this paper uses various diagnostic tests to check the various econometric issues in the given models. The results of the diagnostic tests have showed that residual is normally distributed, homoscedastic and absence of serial correlation in all the given models. Moreover, descriptive statistics also shows that variables of present study are normally distributed. In sum, based on the findings this research recommends that by improving the quality of the governance and by increasing the remittances long-term economic growth is possible in Pakistan. In addition, financial development is also an important determinant of growth in Pakistan. Therefore, government focus on eradicating corruption and increasing remittances are the right policies for economy of Pakistan in the long run. 

Structure of the Coolidge Axis II Inventory Personality Disorder Scales from the Five-Factor Model Perspective

1998 ◽  
Vol 83 (3) ◽  
pp. 947-952 ◽  
Author(s):  
Nerella V. Ramanaiah ◽  
J. Patrick Sharpe
Keyword(s):  
Correlation Analysis ◽  
Personality Disorders ◽  
Canonical Correlation Analysis ◽  
Canonical Correlation ◽  
Simple Structure ◽  
Factor Model ◽  
Five Factor Model ◽  
Canonical Variate ◽  
Axis Ii ◽  
Canonical Variates

Coolidge, et al. in 1994 tested the generality and comprehensiveness of the five-factor model of personality as applied to personality disorders by performing a canonical correlation analysis for the scales from the Coolidge Axis II Inventory and the NEO Personality Inventory testing 178 undergraduates (106 men and 72 women). Their results did not support the generality and comprehensiveness of the five-factor model for interpreting the structure of personality disorders. A major problem with this study was that the data did not show good simple structure and meaningfulness because no rotation was performed for the canonical variates. The present study tested the hypothesis that the results of Coolidge, et al. might be attributed to the failure to rotate canonical variates to obtain good simple structure. For 220 students in introductory psychology (104 men and 116 women), canonical correlation analysis with varimax rotation was performed for scores on the Coolidge Axis II Inventory scales and the NEO Five-Factor Inventory scales. The analysis indicated five canonical variate pairs which were interpreted as Neuroticism, Extraversion, Openness, Disagreeableness, and Conscientiousness, supporting the tested hypothesis as well as the generality and comprehensiveness of this model for describing the structure of personality disorders.

scholarly journals Enabling stock market development in Africa: A review of the macroeconomic drivers

2021 ◽  
Vol 18 (1) ◽  
pp. 357-364
Author(s):  
Paul Uzum ◽  
Ailemen Ochei Ikpefan ◽  
Alexander Ehimare Omankhanlen ◽  
Jeremiah Ogaga Ejemeyovwi ◽  
Benjamin Ighodalo Ehikioya
Keyword(s):  
Stock Market ◽  
Private Sector ◽  
Stock Markets ◽  
Trade Openness ◽  
Market Development ◽  
External Trade ◽  
African Countries ◽  
Stock Market Development ◽  
Access To Credit ◽  
Per Capita

Africa has underdeveloped stock markets that have failed to meet the continent’s capital needs, such as rapid economic growth. This research analyzes the key drivers of stock market development in Africa from a macroeconomic perspective. The study examines several macroeconomic variables, including credit to the private sector, foreign direct investment, external reserves, money supply, external trade, per capita GDP, inflation, and lending rate to explain stock market development in Africa. The study builds a panel data consisting of eight African countries from 1994 to 2018 and applies the pooled mean group estimation technique. The analysis shows that in the long run, credit to the private sector, external reserves, and inflation are the most important factors that influence stock market development, while in the short run, income and trade openness are significant in explaining stock market development in Africa. The study recommends that policies to develop African stock markets should center on developing the private sector through access to credit, increased per capita income, and effective foreign reserve management to boost local and foreign investors’ confidence.

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