scholarly journals Research on the Risk Management of Stock Market Based on Macroeconomic Analysis

2018 ◽  
Keyword(s):  
Risk Management ◽  
Stock Market ◽  
Macroeconomic Analysis

Stock Market Development And Economic Growth in Nigeria

1998 ◽  
Vol 2 (1) ◽  
pp. 33-38 ◽  
Author(s):  
John C. Anyanwu
Keyword(s):  
Economic Growth ◽  
Risk Management ◽  
Stock Market ◽  
Conceptual Framework ◽  
Corporate Control ◽  
Market Development ◽  
Political Environment ◽  
Stock Market Development ◽  
Long Run

Is the stock market development important for economic growth in Nigeria? One line of research argues that it is not; another line stresses the importance of stock market development in allocating capital, acquisition of information about firms, easing risk management, mobilization of savings, and exerting corporate control. Indeed, some theories provide a conceptual framework for the belief that larger, more efficient stock markets boost economic growth. This article examines whether there is a strong empirical association between Nigerian stock market development and long-run economic growth. Our empirical results suggest that the Nigerian stock market development is positively and strongly associated with long-term economic growth. This implies that Nigerian policymakers should make concerted efforts at removing obstacles to stock market development while creating and sustaining an enabling macroeconomic and political environment for the market’s development.

Stock market stress from the central counterparty’s perspective

2019 ◽  
Vol 36 (1) ◽  
pp. 51-62
Author(s):  
Barbara Dömötör ◽  
Kata Váradi
Keyword(s):  
Risk Management ◽  
Stock Market ◽  
Stress Measurement ◽  
Risk Measure ◽  
Moving Averages ◽  
Stress Indicators ◽  
Content Type ◽  
Stress Signals ◽  
Relative Spread ◽  
Extreme Returns

Purpose The purpose of this paper is to investigate the possibility of monitoring stress on stock markets from the perspective of a central counterparty (CCP). Due to their balanced positions, CCPs are exposed to extreme price movements in both directions; thus, the major risk for them derives from extreme returns and market illiquidity. The authors examined the connection of the stress alarms of return- and liquidity-based measures to find an objective basis for stress measurement. Design/methodology/approach The authors defined two types of stress measures: indicators based on extreme returns and liquidity. It is suggested that the stress indicators should be based on the existing risk management methodology that examines different risk measure oversteps. The stress signals of the past nine years on the German stock market were analyzed. The authors investigated the connection between the chosen stress measures to obtain a robust measure for alarming stress. Findings Although extreme returns and illiquidity are both characteristics of stress, the correlation of returns- and liquidity-based stress indicators is low when taking daily values. On the other hand, the moving averages of the indicators correlate significantly in the case of measures of downward and upward extreme returns and liquidity measured by the relative spread. The results are robust enough to be used for monitoring stress periods. Originality/value This paper contributes to understanding the characteristics of stress periods and points to the fact that stress signals measured by different aspects can also differ within the same asset class. The moving averages of returns- and relative spread-based indicators, however, could provide a cost-effective quantitative support for the risk management of a CCP and make the margin calculation predictable for clearing members as well.

A New Macroeconomic Architecture for the Stock Market

2014 ◽  
pp. 1521-1538
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Stock Market ◽  
Growth And Development ◽  
Stock Exchange ◽  
General System ◽  
Real Economy ◽  
The Real ◽  
Financial Architecture ◽  
Macroeconomic Analysis ◽  
State Of The Economy ◽  
Emergent Structure

The old idea of segmented macroeconomics of the financial sector competing with the real economy is replaced by a new model, which manifests strong interaction, integration and co-evolution by circular causation relations between the monetary sector and the real economy with the bridging function of finance and financial instruments. The Money, Finance, Spending and Real Economy (MFSRE) model emerges. This model formalizes the new architecture for the macroeconomy, and its relationship to the stock market. In this model relating to a reconstructed state of the economy and the emergent structure of the financial architecture, money and spending are treated as complementary elements of growth and development. The overarching structure in the end is the MFSRE with its extensively complementary inter-variables relationship in a general system and cybernetic form of interrelationships. The economic organization of the MFSRE causes price stabilization and economic growth and development. These are signified in the social wellbeing criterion of the good economy. The stock market, exemplified by the empirical case study of Bangladesh's state of the economy and the Dhaka Stock Exchange, bring out the true example of the macroeconomic analysis. The new financial architecture with its stabilization, sustainability and growth and wellbeing as basic-needs regime of development is contrasted with old macroeconomic belief and policies based on outmoded macroeconomic beliefs and futures.

Investment Diversificationand Islamic Risk Management in the Malaysian Stock Market

2021 ◽  
Vol 12 (3) ◽  
pp. 540-546
Author(s):  
Nurhanani Romli Et.al
Keyword(s):  
Risk Management ◽  
Stock Market ◽  
Capital Asset Pricing ◽  
Pricing Model ◽  
Capital Asset ◽  
Asset Pricing Model ◽  
High Volatility ◽  
Islamic Principle ◽  
Islamic Economic ◽  
Risk Investment

Risk investment was a matter that should be well managedby each investor since each unit  of stock has their own risk. This study will explained in detail related risks of investing in portfolio either Shariah stock or conventional stock. Besidesthat,  further discussion on the risk of investment from the perspective of Islamic economics will be include together since any shariah stock have to obey with Islamic principle before it can be considered as a Shariahcompliant stock. Capital Asset Pricing Model (CAPM) will be used to measure the level of risk starting from the year 2007 when  subprimecrisisjust done until year of 2010. Results of the study show that the volatility of stock market in Malaysia can be considered as a high volatility and its means as a high risk. The findings of study also found that Islamic economic has recognizes the existence of investmentrisk. One of methods that are used in the management of risk was  diversification. This methodwillreduces risk by allocating investments among various financial instruments, industries, and other categories. In conclusion, the process of diversificationthatwas done by most of the investors are keeping to the concept of risk management in the Islam.

scholarly journals Application of VaR Methodology to Risk Management in the Stock Market in Iran

2011 ◽  
Vol 7 (1) ◽  
Author(s):  
Mirfeiz Fallah Shams ◽  
Zeinab Sheikhi ◽  
Maryam Sheikhi
Keyword(s):  
Risk Management ◽  
Stock Market

A New Macroeconomic Architecture for the Stock Market A General-System and Cybernetic Approach

2013 ◽  
Vol 4 (2) ◽  
pp. 1-17 ◽  
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Stock Market ◽  
Growth And Development ◽  
Stock Exchange ◽  
General System ◽  
Real Economy ◽  
The Real ◽  
Financial Architecture ◽  
Macroeconomic Analysis ◽  
State Of The Economy ◽  
Emergent Structure

The old idea of segmented macroeconomics of the financial sector competing with the real economy is replaced by a new model, which manifests strong interaction, integration and co-evolution by circular causation relations between the monetary sector and the real economy with the bridging function of finance and financial instruments. The Money, Finance, Spending and Real Economy (MFSRE) model emerges. This model formalizes the new architecture for the macroeconomy, and its relationship to the stock market. In this model relating to a reconstructed state of the economy and the emergent structure of the financial architecture, money and spending are treated as complementary elements of growth and development. The overarching structure in the end is the MFSRE with its extensively complementary inter-variables relationship in a general system and cybernetic form of interrelationships. The economic organization of the MFSRE causes price stabilization and economic growth and development. These are signified in the social wellbeing criterion of the good economy. The stock market, exemplified by the empirical case study of Bangladesh’s state of the economy and the Dhaka Stock Exchange, bring out the true example of the macroeconomic analysis. The new financial architecture with its stabilization, sustainability and growth and wellbeing as basic-needs regime of development is contrasted with old macroeconomic belief and policies based on outmoded macroeconomic beliefs and futures.

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