scholarly journals Temporal Causal Relationship between Stock Market Capitalization, Trade Openness and Real GDP: Evidence from Thailand

2014 ◽  
Author(s):  
Komain Jiranyakul
Keyword(s):  
Stock Market ◽  
Causal Relationship ◽  
Trade Openness ◽  
Market Capitalization ◽  
Real Gdp ◽  
Stock Market Capitalization

scholarly journals FINANCIAL DEVELOPMENT DAN PERTUMBUHAN EKONOMI INDONESIA

2020 ◽  
Vol 5 (2) ◽  
pp. 140
Author(s):  
Yanuar Irzam ◽  
Ni Putu Wiwin Setyari
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Interest Rates ◽  
Financial Development ◽  
Labor Productivity ◽  
Trade Openness ◽  
Bank Credit ◽  
Real Interest Rates ◽  
Market Capitalization ◽  
Stock Market Capitalization

<p><em>This study aims to analyze the effect of financial development on Indonesia's economic growth using annual data for the 1985-2018 period. The ARDL-ECM model is used to determine the effect in the long term and short term. The results showed in the long run the variable stock market capitalization ratio, the ratio of bank credit to GDP, real interest rates, trade openness and labor productivity affect the economic growth of Indonesia. Variable stock market capitalization ratio significantly influences economic growth, while real interest rates, bank credit ratios to GDP and trade openness have no significant effect. In the short term, the stock market capitalization ratio, bank credit to GDP ratios, real interest rates, trade openness and labor productivity influences Indonesia's economic growth. Variable stock market capitalization ratio, Bank credit ratio to GDP, trade openness and labor productivity have a significant effect on economic growth, while real interest rates have no significant effect on Indonesia's economic growth, The implication of this research is that in order to overcome the impact of interest rates on other economic growth, the government, in this case Bank Indonesia as a regulator, needs to reduce the interest rate to a minimum to encourage the growth of the real sector and other economic variables. In addition, the government must encourage the development of a comprehensive economic system especially financial institutions and monetary policies that are not interest-based as a solution to overcome general economic problems</em></p><p> </p><p>Penelitian ini bertujuan untuk menganalis pengaruh financial development terhadap pertumbuhan ekonomi Indonesia dengan menggunakan data tahunan periode 1985-2018. Model ARDL-ECM digunakan untuk mengetahui pengaruh dalam jangka panjang dan jangka pendek. Hasil penelitian menunjukan dalam jangka panjang variabel rasio kapitalisasi pasar saham, rasio kredit Bank terhadap PDB, suku bunga riil, keterbukaan perdagangan dan produktivitas tenaga kerja berpengaruh terhadap pertumbuhan ekonomi Indonesia. Variabel rasio kapitalisasi pasar saham secara signifikan berpengaruh terhadap pertumbuhan ekonomi, sedangkan suku bunga riil, rasio kredit Bank terhadap PDB dan keterbukaan perdagangan tidak berpengaruh signifikan.Dalam jangka pendek variabel rasio kapitalisasi pasar saham, rasio kredit Bank terhadap PDB, suku bunga riil, keterbukaan perdagangan dan produktivitas tenaga kerja berpengaruh terhadap pertumbuhan ekonomi Indonesia. Variabel rasio kapitalisasi pasar saham, rasio kredit Bank terhadap PDB, keterbukaan perdagangan dan produktivitas tenaga kerja berpengaruh signifikan terhadap pertumbuhan ekonomi. Sedangkan suku bunga riil tidak berpengaruh signifikan terhadap pertumbuhan ekonomi Indonesia, Untuk itu, dalam mengatasi dampak suku bunga terhadap pertumbuhan ekonomi lainnya maka pemerintah dalam hal ini Bank Indonesia sebagai regulator perlu menurunkan tingkat suku bunga sampai batas minimal untuk mendorong pertumbuhan sektor riil serta variabel ekonomi lainnya. Selain itu, pemerintah harus mendorong pengembangan sistem ekonomi secara komprehensif khususnya lembaga keuangan dan kebijakan moneter yang tidak berbasis bunga sebagai solusi untuk mengatasi permasalahan ekonomi secara umum</p>

scholarly journals The Effects of Information Communication Technology on Stock Market Capitalization: A Panel Data Analysis

2017 ◽  
Vol 7 (1) ◽  
pp. 261 ◽  
Author(s):  
Sang Lee ◽  
Matthew Alford ◽  
John Cresson ◽  
Lara Gardner
Keyword(s):  
Stock Market ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Communication Technologies ◽  
Information Communication Technologies ◽  
Fixed Effects Model ◽  
Information Communication ◽  
Market Capitalization ◽  
Using Data ◽  
Stock Market Capitalization

The level of investment in information communication technologies (ICT) that may affect stock market capitalization varies substantially across countries. Using data on 81 countries from 1998 to 2014, we use a country-fixed effects model to estimate the relationship between ICTs and stock market capitalization. Our empirical model is built on the premise that (1) increased deployment of ICT allows financial market participants to make more informed decisions at reduced inherent risks associated with deficient information or uncertainty in financial markets; and (2) increased access to and use of information communication technologies is expected to improve a country's economic fundamentals. The empirical results support our hypothesis that ICT expansions are positively associated with stock market capitalization.

scholarly journals Does a country’s financial and legal systems contemporaneously impact the governance and performance relationship: Further evidence?

2012 ◽  
Vol 9 (4-3) ◽  
pp. 279-308 ◽  
Author(s):  
Anne Anderson ◽  
Parveen P. Gupta ◽  
Andrey Zagorchev
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Market ◽  
Investor Protection ◽  
Legal Systems ◽  
Market Capitalization ◽  
And Performance ◽  
Continuous Measures ◽  
The Impact ◽  
Stock Market Capitalization

We investigate the impact of continuous measures of the financial system and investor protection on the corporate governance-performance relationship. We find that shareholder suits rights/stock market capitalization (disclosure rights/stock market capitalization) has monotonic (non-monotonic) relation with firm performance and that high-levels of stock market capitalization and investor protection generate valuation synergies. Besides interactions of financial and legal systems with corporate governance, market- (bank-) orientation and development and stronger (weaker) investor protection along with better (worse) corporate governance are associated with higher (lower) valuations. A country’s migration to a developed stock market with enhanced investor protection is related to better corporate governance and firm performance.

scholarly journals A Tale of the Ticker; Stock Market Capacity Building Hegemony and Temporal Performance in the Emerging Economies

2020 ◽  
Vol 6 (1) ◽  
pp. 33-52
Author(s):  
Areeba Khan ◽  
Imran Sharif Chaudhry ◽  
Sohail Saeed ◽  
Muhammad Kamran Shahid
Keyword(s):  
Stock Market ◽  
Capacity Building ◽  
Stock Exchange ◽  
Political Stability ◽  
Series Data ◽  
Tax Rate ◽  
Market Capitalization ◽  
The Impact ◽  
Stock Market Capitalization

This paper aims to examine stock market with a capacity building perspective for economic growth, focusing on the factors that enhance stock market capitalization in the long term. This study evaluates cross country series data of 26 emerging countries listed at MSCI index, through a period of 2006 to 2019. The data were collected through World Bank, Pakistan Stock Exchange and SECP database. Vector Error correction model and Multiple Regression analysis were applied on data to analyze the impact of assorted factors on stock market capitalization to GDP as a measure of long term capacity. The findings suggest that political stability and corporate tax rate are two important factors that may have significant impact on stock market capitalization to GDP. This research is different from all past researches with respect to methodological, aeon and acclimatization perspective. Capacity building is a relatively new phenomenon adopted from complex adaptive ecosystems and most studies in this area are of theoretical nature. Moreover, the fact that this research has considered not only the long term but also short-term market capitalization perspective, adds to its overall value and originality.

scholarly journals Corporate governance practices in emerging markets: Evidence from Kazakhstan financial system

2015 ◽  
Vol 13 (1) ◽  
pp. 889-906 ◽  
Author(s):  
Gulnara Moldasheva
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Significant Relationship ◽  
Negative Relationship ◽  
Financial System ◽  
Market Capitalization ◽  
Significant Negative Relationship ◽  
Governance Practices ◽  
Equity Ratio ◽  
Stock Market Capitalization

This research examines the influence of corporate governance practices on leverage and financial performance of firms in financial system of Kazakhstan. The research employs level data for financial institutions, listed on Kazakh Stock Exchange by using multivariate regression analysis under fixed effect model approach. Results of panel study showed that board size is significantly positively correlated with debt to equity ratio, and with the number of independent directors. Private investors’ shareholding is significantly negatively correlated with debt to equity ratio. CEO/Chair duality is significantly positively correlated with the debt to equity ratio. The size of form has also significant effect on the leverage level. Analysis of the banking sector showed a negative relationship between managerial ownership (MO) and both market value (Tobin’s Q) and performance (ROA and ROE). Moreover, there are statistically significant relationship between bank performance and stock market capitalization, scaled to GDP of country, and there is statistically significant negative relationship between Tobin’s Q and net interest income to total operating income as a proxy for income diversity. The findings also show higher risk-taking behavior (capital market indicators as risk measure, Z-score and the percentage of non-performing loans in total loans as NPL/L). There is a positive relation between MO and Z - scores, and negative relationship between MO and NPL. Moreover, there are significant relationship between banking risk and development of the financial markets which is proxy by private credit and stock market capitalization, both scaled by GDP of country, and, there is statistically significant negative relationship between debt intensity and risk.

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.

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