Macroeconomic factors and foreign portfolio investment volatility: A case of South Asian countries

Waqas, Yahya; Hashmi, Shujahat Haider; Nazir, Muhammad Imran

doi:10.1016/j.fbj.2015.11.002

Cited by 53 publications

(57 citation statements)

References 31 publications

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“…Also for a country which has both export and import components can gain from appreciation of home currency if the negative effects of currency appreciation on exports is offset by the positive effect of increase in imports due to currency appreciation. Estimated results of exchange rate are consistent with Waqas et al (2015). Waqas et al (2015) conducted research on economic factors impact on stock returns in Pakistan, by using secondary data from 1981 to 2013.…”

Section: Empirical Results and Discussionsupporting

confidence: 56%

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Nexuses between Economic Factors and Stock Returns in China

Khan¹,

Teng²,

Parviaz³

et al. 2017

IJEF

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Economist and stock managers always focus on stock market return. This study investigated short and long run relationship between economic factors and stock returns in China by applying ARDL approach from 01/2000 to 12/2016. Estimated results of bound test for co-integration shows that long run relationships exist among the variables except inflation rate. Results of short and long run ARDL demonstrate that exchange rate and inflation rate have positive effect on stock returns in China while interest rate have negative effect on stock returns. Results indicate that stock returns in China are very sensitive and can be affected positively or negatively with increase and decrease in economic factors. Both local and regional factors in China can directly and indirectly explain Shanghai Stock Exchange stock returns.

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Section: Empirical Results and Discussionsupporting

confidence: 56%

“…Estimated results of exchange rate are consistent with Waqas et al (2015). Waqas et al (2015) conducted research on economic factors impact on stock returns in Pakistan, by using secondary data from 1981 to 2013. Their results indicated that exchange rate have positive impact on stock return in Pakistan.…”

Section: Empirical Results and Discussionsupporting

confidence: 56%

Nexuses between Economic Factors and Stock Returns in China

Khan¹,

Teng²,

Parviaz³

et al. 2017

IJEF

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“…At the cross country level, Waqas et al (2015) investigated the relationship between macroeconomic variables and FPI volatility in four South Asian countries, which are India, China, Pakistan and Sri Lanka. They found a significant and nega-tive relationship between inflation and volatility of FPI in China and India.…”

Section: Previous Researchmentioning

confidence: 99%

Determinants of foreign portfolio investment: the case of Jordan

Al-Smadi

2018

Investment Management and Financial Innovations

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This study investigates the determinants of foreign portfolio investment in Jordan using series of data covering the period from 2000 to 2016. Eight independent variables were employed. They are: aggregate economic activity, inflation, interest rate differentiation, stock market performance, risk diversification, country creditworthiness, governance, and corruption. The regression results show that good and stable macroeconomic environment attracts foreign investors. In addition, foreign investors prefer to invest in the capital market which provides an opportunity of risk diversification. A country that has enough liquidity to meet its obligation, and has well-governed environment attracts more portfolio investment. The results of the study provide empirical evidence about the factors that have a significant impact on the flow of foreign portfolio investment to Jordan. These factors can be utilized when formulating polices by the specialized authorities who are seeking to attract more portfolio investment.

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“…Tabachnick and Fidell (1983) emphasis the ISSN 1946-052X 2017 existence of multicollinearity problem if the correlation between variables is more than 0.9 percent. Since the highest values are less than 0.9 percent, indicating un-existence of multicollinearity.…”

Section: Correlations Matrix and Multicollinearitymentioning

confidence: 99%

“…Foreign ownership is defined as the percentage of shareholding of non-resident foreign investors and foreign portfolio equity investors (Bokpin, Isshaq&Nyarko, 2015;Mangena&Tauringana, 2007;Waqas, Hashmi &Nazir, 2015).Participation of foreign investors in domestic financial markets has increased over the last few years in the developing countries (Ramaswamy&Li, 2001). Foreign capital inflow has become more significant in developing countries.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Effective Corporate Boards and Audit Committees on Attracting Foreign Ownership in Listed Companies in the Gulf Cooperation Council

Al-shamahi

Manaf

Alarussi

2017

AJFA

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This study empirically examines the impact of effectiveness of both corporate boards and audit committee on foreign ownership in selected non-financial listed companies of the stock markets in Gulf Cooperation Council (GCC) countries. Contrary to previous studies, this study enters the firm size, leverage, exchange rate risks, inflation risks and economic growth as control variables. For the first time, it also includes the political risks’ variable as a control variable that may affect foreign ownership. In term of panel data regression analysis, the study was built on fixed effect model and conducted to the period of 2012-2015 for 143 non-financial listed companies on the GCC stock markets. Our results explain that foreign ownership is positively related to the effectiveness of both the boards of directors and the audit committees. Political risks and firm size are positively significant with foreign ownership, while the leverage is negatively related to foreign ownership. The implication of this study may help beneficiaries in making better policy decisions and provide guidance for corporate managers on the needs of foreign investors.

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Macroeconomic factors and foreign portfolio investment volatility: A case of South Asian countries

Cited by 53 publications

References 31 publications

Nexuses between Economic Factors and Stock Returns in China

Nexuses between Economic Factors and Stock Returns in China

Determinants of foreign portfolio investment: the case of Jordan

The Impact of Effective Corporate Boards and Audit Committees on Attracting Foreign Ownership in Listed Companies in the Gulf Cooperation Council

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