Nomen est Omen: How Company Names Influence Short- and Long-Run Stock Market Performance

2006 ◽  
Author(s):  
Pascal Pensa
Keyword(s):  
Stock Market ◽  
Market Performance ◽  
Long Run ◽  
Stock Market Performance

scholarly journals Does Monetary Policy and Foreign Direct Investment Have an Influence on the Performance of Stock Market: Further Empirical Evidence from Ghana

2020 ◽  
Vol 2 (2) ◽  
pp. 161-176
Author(s):  
Opoku Adabor ◽  
Emmanuel Buabeng
Keyword(s):  
Monetary Policy ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Market Performance ◽  
Empirical Literature ◽  
Long Run ◽  
Stock Market Performance ◽  
Short Run ◽  
Positive Effect

Monetary policy, foreign direct investment, and the stock market continue to dominate in discussions in developing countries. However, the linkage between the three variables in empirical literature remains unclear. This study aims to test two separate hypotheses: Firstly, the study examines the effects of monetary policy on stock market performance in Ghana. Secondly, the study also empirically investigates the effect of foreign direct investment on stock market performance in Ghana. Autoregressive Distributed Lag (ARDL) model was employed as an estimation strategy to examine the short and long-run effects using annual time series data from 1990 to 2019. The study revealed that monetary policy rate and money supply exerts a statistically significant negative and a positive effect on stock market performance in both the long and short-run in Ghana, respectively. It was also found that foreign direct investment has significant and a positive effect on stock market performance in Ghana in both the long and short run. Total capital stock and volume traded were also found to exert significant positive and negative impacts on stock market performance both in the short and long run respectively. Based on our findings, we recommend that expansionary monetary policy will be a better option to be carried out to improve the stock market performance in Ghana. Furthermore, government and private partnership may ensure the effective management of the macroeconomic variables to attract foreign direct investment into Ghana to boost stock market performance.

Long-Run IPO Performance Analysis of German and Spanish Family-Owned Businesses

2005 ◽  
Vol 18 (3) ◽  
pp. 179-202 ◽  
Author(s):  
Peter Jaskiewicz ◽  
Víctor M. González ◽  
Susana Menéndez ◽  
Dirk Schiereck
Keyword(s):  
Stock Market ◽  
Initial Public Offerings ◽  
Family Involvement ◽  
Positive Impact ◽  
Market Performance ◽  
Abnormal Returns ◽  
Negative Influence ◽  
Ipo Performance ◽  
Long Run ◽  
Stock Market Performance

This article examines the long-run stock market performance of German and Spanish initial public offerings (IPOs) between 1990 and 2000. We distinguish between family-and nonfamily-owned business IPOs by using the power subscale of the F-PEC. Buy-and-hold-abnormal returns (BHAR) are calculated in order to determine abnormal returns. Our results show that three years after going public, investors, on average, realized an abnormal return of − 32.8% for German and − 36.7% for Spanish IPOs. In both countries, nonfamily business IPOs perform insignificantly better. Regression analyses show that for the whole sample there is a positive company size effect. In family-owned businesses, strong family involvement has a positive impact on the long-run stock market performance, whereas the age of the firm has a negative influence.

Assymetric effect of fiscal and monetary policies on the stock market performance in Nigeria

2021 ◽  
Vol 8 (2) ◽  
pp. 39-53
Author(s):  
Oluwayemisi Adeleke ◽  
Olusola Oyeleke
Keyword(s):  
Fiscal Policy ◽  
Stock Market ◽  
Market Performance ◽  
Asymmetric Effect ◽  
Test Technique ◽  
Monetary Policies ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Stock Market Performance

This study investigated the asymmetric effect of fiscal and monetary policies on stock market performance from 2000:q1-2018q3 in Nigeria. The study used Auto Regressive Distributed Lag (ARDL) Bounds Test technique of cointegration to determine the equilibrium relationship among the series. After the long run relationship has been established, Vector Error Correction Model was used to analyse the data. The results showed that only anticipated fiscal policy had a negative and significant effect on the stock market performance in the third and fourth quarters of the year. In contrast, anticipated and unanticipated monetary policy as well as unanticipated fiscal policy did not exert effect on stock market performance in Nigeria. Government in Nigeria should reduce its expenditure which has the capacity to negatively influence the performance of stock market in Nigeria.

Interest group activity and long-run stock market performance

Public Choice ◽  
2007 ◽  
Vol 133 (3-4) ◽  
pp. 343-358 ◽  
Author(s):  
Dennis Coates ◽  
Bonnie Wilson
Keyword(s):  
Stock Market ◽  
Interest Group ◽  
Market Performance ◽  
Group Activity ◽  
Long Run ◽  
Stock Market Performance

scholarly journals The Effect of Money Supply, Exchange Rate, and Interest Spread toward the Performance of Stock Market in Malaysia

2019 ◽  
Vol 6 (2) ◽  
pp. 142
Author(s):  
Yeoh Kai Qing ◽  
Suhal Kusairi
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Money Supply ◽  
Market Performance ◽  
Real Effective Exchange Rate ◽  
Long Run ◽  
Stock Market Performance ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

The stock market has become a significant role in the economy and has attracted investor's attention, as it is to generate funds and make an investment decision for companies and investors as well. Therefore, the objective of this study is to study the effect of the money supply, exchange rate, interest spread and stock market in the short and long run and volatility issue. The study employed monthly data, from January 1997 to August 2018. Method analysis is the Autoregressive distributed lag (ARDL) and GARCH model. The findings stated that the money supply, real effective exchange rate, interest spread, had a long-run effect on the performance of the stock market. Money supply and the real effective exchange rate had a positive effect on the stock market performance in the short run. Conversely, the interest spread showed a negative influent on the stock market performance in the short run. The volatility indicated a high persistence between the money supply, real effective exchange rate, interest spread and stock market (KLCI). The implication of the study is the investors or policymakers should take account the changes of interest rate and exchange rate before making stock investment or policy to stabilize the stock market performance.Keywords: Performance, Money Supply, Real Effective Exchange Rate (REER), Interest Spread

scholarly journals Monetary-Fiscal policies and stock market performance: Evidence from linear ARDL framework

2021 ◽  
Vol 5 (4) ◽  
pp. 69-80
Author(s):  
Aref Emamian ◽  
Nur Syazwani Mazlan
Keyword(s):  
United States ◽  
Stock Market ◽  
Market Performance ◽  
The United States ◽  
Tax Revenue ◽  
Fiscal Policies ◽  
Long Run ◽  
Stock Market Performance ◽  
The Us ◽  
Short Run

Objective – To explore the impacts of monetary and fiscal policies, the appropriateness of both policies and how the stock market is affected by their adoption and implementation in the United States (US). Hence, this study aims to determine the short and long run relationships between monetary and fiscal policies and stock market performance as well as establish potential factors and policies contributing to the highs and lows. Methodology/Technique – We use autoregressive distribution lag (ARDL) developed by Pesaran et al. (2001) to achieve the objective. In this study, annual time series data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, was used. Findings – The results show that both policies play a significant role in the stock market. We find a significant positive effect of real gross domestic product (RGDP) and the interest rate on the US stock market in the long run and significant negative relationship effect of the consumer price index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Novelty – As the US stock market heavily depends on the Tax Revenue in the short run, any changes in TR can impact on the US stock market considerably. Thus, shareholders can benefit from these results when they look at macroeconomic data in order to enhance their investment strategy. Type of Paper: Empirical. JEL Classification: E52; E62; G18 Keywords: ARDL; Monetary Policy; Fiscal Policy; The Stock Market in The United States. Reference to this paper should be made as follows: Emamian, A; Mazlan, N.S. 2021. Monetary-Fiscal policies and stock market performance: Evidence from linear ARDL framework, Journal of Business and Economics Review, 5(4), 69–80. https://doi.org/10.35609/jber.2021.5.4(7)

scholarly journals The Effect of Crude Oil Price Shocks on Indonesia Stock Market Performance

2020 ◽  
Vol 16 (1) ◽  
pp. 11-23
Author(s):  
Indra Darmawan ◽  
Hermanto Siregar ◽  
Dedi Budiman Hakim ◽  
Adler Haymans Manurung
Keyword(s):  
Stock Market ◽  
Crude Oil ◽  
Market Performance ◽  
Oil Price ◽  
Oil Price Shocks ◽  
Crude Oil Price ◽  
Price Shocks ◽  
Long Run ◽  
Stock Market Performance ◽  
Global Stock

The main purpose of this study is to observe the effects of the crude oil price shocks on Indonesia stock market performance to complete the literature on Indonesia stock market behavior. We examined the effects of the crude oil price shocks on Indonesia stock market performance through the cointegration relationship mechanism between IHSG and the crude oil price and between IHSG and the global stock market indices. The Brent crude oil price data taken from FRED economic data, the Federal Reserve Bank of St.Lois, and the stock market indices data taken from yahoo.finance.com. By using a vector error correction model (VECM) approach, we found that IHSG has significant long-run relationships with the crude oil price and the global stock market indices. This finding indicates that the effects of the crude oil price shocks on IHSG transmitted directly through the cointegration mechanism between IHSG and the crude oil price, and indirectly through the cointegration mechanism between IHSG and the global stock market indices.

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