The Impact of Foreign Direct Investment on Stock Market Development: Evidence From Pakistan

Shahbaz, Muhammad; Kalim, Rukhsana

doi:10.1080/1331677x.2013.11517588

Cited by 28 publications

(31 citation statements)

References 18 publications

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“…The results demonstrate the consistency of the parameters as the test plot is within acceptable limits at a rational 5 per cent point, i.e. the Journal of Finance & Economics Research regression coefficients are constant over time (Shahbaz, Hooi Lean, & Kalim, 2013).…”

Section: Stability Of the Modelsupporting

confidence: 52%

Determinants of Real Earning Management: A Study in Public Listed Companies in Pakistan Stock Exchange

Siyal¹,

Ahmed²,

Kaleem³

et al. 2020

j.financ.econ.res

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The organizations consider earning as a key factor for their long term survival. If the organizations are not properly managed their organizations then their long term survival and competitive advantage could not be achieved. The current research studied the moderating impact of audit committee independence in the relationship between structure of board (size, independence, and duality of CEO) and real earnings management (REM) in the listed companies of Pakistan. Data was gathered from 150 firms' year wise observations of the industrial and service sectors of Pakistan stock exchange from the year 2010-2019. Using the fixed effect size approach, the findings show the negative and significant effect of board size and CEO duality on REM. While, the audit committee independence moderated the relation between board structure and REM which weakens the board size impact and CEO duality on the REM determination and increases the effectiveness independence in controlling REM.

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Section: Stability Of the Modelsupporting

confidence: 52%

Determinants of Real Earning Management: A Study in Public Listed Companies in Pakistan Stock Exchange

Siyal¹,

Ahmed²,

Kaleem³

et al. 2020

j.financ.econ.res

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show abstract

“…Bannerjee, Dolado and Mestre [22] asserted that a highly significant lagged error correction terms further prove the existence of long-run relationship between the variables. Shahbaz, Lean and Kalim, [23] corroborated this view when they opined that the existence of negative and significant ECM in the model connotes that a change in the dependent variable depends on changes in both the dependent variables and level of disequilibrium in the cointegration relationship.…”

Section: Estimated Error Correction and Long-run Modelsmentioning

confidence: 84%

Inflation Dynamics in Nigeria

Augustine

Uche

Ozoh

2020

JEMT

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Inflation remains a central issue to policy makers and analysts. High inflation induces uncertainty, adversely affects financial sector development and it is the goal of monetary authorities to achieve price stability in consonance with the general consensus that price stability aids growth of the economy. Despite the goal of single-digit inflation rate by monetary authority (CBN), the Nigerian economy is still practically characterized by high cost of living, increased variability of relative prices of goods and services; therefore the reliability of the monetary aggregates as the main signal for the conduct of monetary policy for control of inflation has become increasingly questionable. Against this backdrop, this research examined the determinants of dynamics of inflation in Nigeria over a period of 36 years (1982-2016); using New Keynesian Philips Curve theoretical framework, Ordinary Least Square estimation techniques (OLS), ARDL bounds testing approach to cointegration and Vector Autoregressive (VAR) econometric techniques to ascertain if inflation is only a monetary phenomenon in Nigeria having inflation as dependent variable and exchange rate (Ex), interest rate (Ir), Unemployment (U), Real Gross Domestic Product (RGDP) as independent variable. The result of the estimation shows that inflation is not only a monetary phenomenon by the statistical significance of EX and RGDP at short and long-run, U and IR at long-run. Therefore, it was thus recommended that exchange rate and inflation targeting monetary policy framework that will revalue the naira should be implemented to reduce inflation while expansionary fiscal policy that will increase RGDP is also recommended for reduction of inflation.

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“…The coefficient of the Error Correction Term (ECT) indicates the speed at which the model adjusts to long run equilibrium while the sign of the ECT indicates the direction of adjustment to equilibrium (Pesaran et al, 2001). According to Shahbaz et al, (2013) the coefficient of the error correction term should be negative and significant to indicate a stable long run equilibrium. A highly significant negative coefficient of the error correction term is an indication of stable long run equilibrium of the model (Bannerjee, Dolado & Mestre,1998).…”

Section: Cointergration Test Resultsmentioning

confidence: 99%

Foreign Capital Flows and Stock Market Capitalization at the Nairobi Securities Exchange, Kenya

Osoro¹,

Simiyu²,

Omagwa³

2020

EJBM

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Since the onset of financial markets liberalization in the early 1990s, the volume of capital inflows to emerging capital markets has grown to unprecedented levels. Despite growth in capital flows, emerging capital markets are characterized by small size and very low liquidity. In the period 2008-2018, the number of listed firms at the Nairobi Securities Exchange increased only by twelve firms from 55 listed firms in the January 2008 to 67 listed firms as at December 2018 giving an average annual increase of approximately one firm per year. This study therefore sought to establish the effect of foreign capital inflows on stock market capitalization at the Nairobi Securities Exchange, Kenya. The study adopted a causal research design and time series data for the period 2008-2018 was analysed using correlation analysis, and the Autoregressive Distributed Lag Model. The findings from correlation analysis indicate that foreign direct investment had a negative and significant effect on stock market capitalization while foreign equity portfolio inflows had negative but insignificant effect on stock market capitalization at the Nairobi Securities Exchange, Kenya. The autoregressive distributed lag test results support the existence a significant short run positive effects of all foreign capital inflows on stock market capitalization as evidenced by the negative and significant coefficient of the Error Correction Term (ECT). However, in the long run foreign direct investment had a significant negative effect on stock market capitalization while the effect of foreign equity portfolio on stock market capitalization was equally negative but insignificant in the long run. In view of the foregoing findings, there is need for the Kenyan government to reconsider its foreign investment policy to target only productive foreign capital inflows. Moreover, the Capital Markets Authority needs to implement policy measures that will attract active participation of the local investors at the Nairobi Securities Exchange.

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The Impact of Foreign Direct Investment on Stock Market Development: Evidence From Pakistan

Cited by 28 publications

References 18 publications

Determinants of Real Earning Management: A Study in Public Listed Companies in Pakistan Stock Exchange

Determinants of Real Earning Management: A Study in Public Listed Companies in Pakistan Stock Exchange

Inflation Dynamics in Nigeria

Foreign Capital Flows and Stock Market Capitalization at the Nairobi Securities Exchange, Kenya

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