Macroeconomic Determinants of Stock Price Variations: An Economic Analysis of Kse-100 Index

Hussain, Altaf; Rafique, M. Qaisar; Khalil, Ambar; Nawaz, Maryam

doi:10.52131/pjhss.2013.0101.0003

Cited by 7 publications

(4 citation statements)

References 7 publications

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“…Further, this sign difference can be recognized within the same territory. As an example, Hussain et al (2013) argued a positive relationship and Almutair (2015) argued a negative relationship in Pakistan.…”

Section: Money Supplymentioning

confidence: 99%

Determinants of Stock Price Volatility: A Literature Review

Hewamana

Siriwardhane

Rathnayake

2022

S. Asian J. Finance

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The movements of stock prices highly depend on the respective economic conditions (Chen, Roll, & Ross, 1986). If the economy is performing well, it may lead to a bullish capital market, whereas its poor performance may carry out a bearish capital market. Changes in macroeconomic fundamentals impact stock prices irrespective of the firm's industry. As an example, raising the inflation rate decreases the purchasing power of the customers, leading to lower revenue for the firms (Ball & Romer, 2003). After that, the stock price may decline slightly according to the degree of inflation impact. This common phenomenon was theoretically backed by Arbitrage Pricing Model (APT) introduced by Ross (1976). The APT extends the multifactor model capturing the linear impacts of risk factors on asset returns. Macroeconomic impact has been identified as risk factor in asset return leading to price variability. Different assets have their own degree of risk premiums based on the sensitivity of the asset return on macroeconomic fundamentals. In addition to that, company-specific fundamentals also influence stock prices, like return on assets, future expected cash flows, earning power, etc. However, macroeconomic factors primarily determine the overall market performance.

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Section: Money Supplymentioning

confidence: 99%

Determinants of Stock Price Volatility: A Literature Review

Hewamana

Siriwardhane

Rathnayake

2022

S. Asian J. Finance

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“…This study essentially utilized 10 organizations as test from the oil and gas mining organizations that were recorded on stock trade of Indonesia (IDX) for a time range from 2014-2018, total of fifty numbers of observations. The conclusions of the analysis done by (Hussain, Rafique, Khalil, & Nawaz, 2013;Musallam et al, 2018) demonstrated that nearly a critical impact of institutional ownership, operating leverage, liquidity on worth of the firm on the performance of an organization. Khalfan and Wendt (2020) looked into that how concentration of ownership affects payment policies and the impact of foreign institutions and state as owners on payout by Nordic companies.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Structure of Ownership on the Company’s Performance regarding Dividend: Evidence from Pakistan

Shah¹,

Ahmed²

2022

Pak. J. Humanit. Soc. Sci

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It is critical for firms to consider the impact on their structure of ownership and dividends on the execution of the organization when making choices with a view toward maximizing earnings. The focus of this study is on the dividend's and ownership structure's effects on a company's bottom line. The study used a panel-regression analysis to determine impact of foreign ownership, family ownership &institutional ownership, on the financial execution of Pakistani firms. Secondary sources were used for this study's data collection. Using information from the PSEL and the Reports of 74 firms over a 6-year period, we have identified a population of interest consisting of non-financial enterprises included in the KSE-100 index. Foreign ownership dividend payment was all shown to significantly affect business performance in the research. Based on the findings, it seems information is crucial for describing the pattern of dividend distribution and its effect on a betterment of firm. This study is novel in that it examines the relation among ownership structure and dividend performance. Evaluation of the structure of ownership to analyze its influence on business execution to generate returns of high investment, this study will aid firms in making of decision to earn greater revenue and help individuals in making their choice.

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“…The banks are the central body between the investors and the borrowers, thus, earns a lot of money. If the investors directly done the investment then the cost of investment is greater than the cost which is bearded by the banks, the cost of bank's investment is low because it collects a pool and diversified it in different plans Mantovi (2019)Before making the investment in any stock or security it is obligatory to analyze the risk that is related with this investment (Hussain, Rafique, Khalil, & Nawaz, 2013). For this purpose, the investor pay price for acquiring the information.…”

Section: Introductionmentioning

confidence: 99%

Bank Diversification, Performance and Cash Holdings: Evidence from Pakistan

Kamran

Shoaib

Mumtaz

et al. 2022

Pak. J. Humanit. Soc. Sci

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The current study explores the moderating impact of cash holdings on the relationship between bank diversification and bank performance. For doing this, the data for the period of 2009 to 2019 for 18 banking firms are gathered from annual reports and the business recorder websites. Return on assets, profit ratio, Tobin q, and cost to income ratio are utilized as dependent, income diversity is taken as independent, cash positions, and cash conversion cycle, and liquidity are used as moderating while bank size, capital ratio, loan loss provision ratio, and loan ratio are used as control variables. Regression analysis is applied to analyze the impact of cash holdings on the bank diversification and performance link. The findings of the study show that income diversification, cash positions, cash conversion cycle, and liquidity have a positive impact on the bank's performance (measured by return on assets, profit ratio, and cost-to-income ratio). Income diversification has a non-significant impact on Tobin Q while cash positions, cash conversion cycle, and liquidity have a significant positive impact on Tobin Q. Moreover, all measures of cash holdings (cash positions, cash conversion cycle, and liquidity) moderate the relation between bank diversification and performance as the coefficients of income diversity become more significant with the inclusion of moderating force. The findings suggest increasing income diversity in banks in order to improve bank performance. The study also recommends considering cash holdings as a strengthening force in the relationship between bank diversification and performance.

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Macroeconomic Determinants of Stock Price Variations: An Economic Analysis of Kse-100 Index

Cited by 7 publications

References 7 publications

Determinants of Stock Price Volatility: A Literature Review

Determinants of Stock Price Volatility: A Literature Review

Impact of Structure of Ownership on the Company’s Performance regarding Dividend: Evidence from Pakistan

Bank Diversification, Performance and Cash Holdings: Evidence from Pakistan

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