The Role of Stock Market Development in Influencing the Firms Performance: A Study Based on Pakistan Stock Market

Sulong, Sophee; Saleem, Qasim; Ahmed, Zeeshan

doi:10.5539/ijef.v10n12p104

Cited by 6 publications

(4 citation statements)

References 18 publications

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“…An abundance of the literature is present on the association between finance and economic growth (e.g., (King & Levine, 1993a;Levine, 1999Levine, , 2005). First, a large number of literature presented by (e.g., (Boot & Thakor, 1997;Coccorese & Shaffer, 2021;Diamond, 1984;Silva, Tabak, & Laiz, 2021;Stulz, 2000;Yanik, Binte Osman, & Ozturk, 2020) on banks role and allocation of capital for economic development; very few studies conducted with the perspective of stock market uniqueness and role in the allocation of funds and boosting market performance (e.g., (Allen, Gale, et al, 2000;Arestis, Demetriades, & Luintel, 2001;Sulong, Saleem, & Ahmed, 2018)). In addition, the empirical shreds of evidence are limited for equity market development for market performances.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Stock Market and Bank Development on the Firm’s Growth: Evidence from Pakistan

Khan¹,

Mao²,

Haider³

et al. 2021

Int. j. bus. adm. stud

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Aim: Despite years of empirical research, the nexus between banks development and the stock market with economic growth is still controversial. This study examined the impact of the stock market and banks development on the firm's growth in Pakistan. The sector of non-financial firms chosen for analysis and financial firms ignored because of different structure. The sample of 45 firms listed on the Pakistan Stock Exchange (PSX) from the period of 2014-2019 used for the analysis. The sample has been selected based on the firm's market capitalisation and random effect model to estimate both institution development and firm growth. We controlled the firm's profitability, interest, and inflation. The results are robust to the Estimated Generalised Least Squares (EGLS) method. Results showed that significant positive relation exists between stock market development and firm growth, while a negative association exists between banks development and firm growth. Furthermore, control variables (profitability, interest, and inflation) have a significant negative impact on firm growth. The findings contribution in literature with perspective to Pakistan because prior studies done related to developed countries. Policymakers may use this study for making policy related to firms and economic growth.

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Section: Literature Reviewmentioning

confidence: 99%

Impact of Stock Market and Bank Development on the Firm’s Growth: Evidence from Pakistan

Khan¹,

Mao²,

Haider³

et al. 2021

Int. j. bus. adm. stud

View full text Add to dashboard Cite

show abstract

“…In addition, the capital market evaluates the conditions of companies within a country (Hassan, 2013). Stock market performance indicators are effective in determining economic trends (Sulong et al 2018). Companies require substantial funding for various activities.…”

Section: Introductionmentioning

confidence: 99%

Do Macroeconomic Factors Affect the Composite Stock Price Index?

Sianipar,

Susilowati,

Tumangger

et al. 2024

SULTANIST

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The movement of the stock market index is a barometer of economic growth, and can be used to make investment decisions. Many factors influence the movement of a stock index, particularly from the macroeconomic perspective. This study analyzes the effects of BI rate, exchange rate, and inflation on the Composite Stock Price Index (CSPI). This research is a quantitative descriptive study conducted on food and beverage companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2022 period. Sixty companies were sampled and analyzed using multiple linear regression tests. Hypothesis testing uses the R2 (coefficient of determination) test, F, and t-tests. The results show that BI and exchange rates have a partially significant effect on CSPI. Inflation did not have a significant effect on the CSPI. However, simultaneous testing showed that the three variables affected the CSPI.

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“…Moreover, they have better stock prices, high liquidity of stocks and low volatility in the market. Investors prefers to invest in a well developed stock market which in turn results an increase in firm performance, and this is an introduction to the development of the economies of the countries (Sulong, Saleem & Ahmed, 2018).…”

Section: Introductionmentioning

confidence: 99%

The Model of Stock Market Participation with an Emphasis on Cultural and Social Factors: A Grounded Theory Approach

Rahimi¹,

makarani²,

Zabihi³

2020

IJAT

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The purpose of this study was to present a model of stock market participation with an emphasis on cultural and social factors. Given that to date, there has not been any realized stock market participation model developed with social and culture considerations; therefore, there are no realized cases to be studied as a part of this paper"s research methodology. hence grounded theory is applied to propose a consistent framework. The results of the study showed that the cultural and social factors play an important role in stock market participation. factors like power distance index, uncertainty avoidance index, individualism vs. Collectivism, risk aversion, belief and attitude, self confidence, optimism, social interaction, group membership, family, peer group, internet, learning from others, word of mouth communication with others and herding behavior. The results also showed that expanding financial literacy, increase the transparency of financial markets, government protection of shareholders, increase public awareness about the stock market, reduce entry and transaction costs in the stock market, are the most important strategies, which can be employed to increase stock market participation. This paper also discusses the applicability and implications of this new framework for future research.

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The Role of Stock Market Development in Influencing the Firms Performance: A Study Based on Pakistan Stock Market

Cited by 6 publications

References 18 publications

Impact of Stock Market and Bank Development on the Firm’s Growth: Evidence from Pakistan

Impact of Stock Market and Bank Development on the Firm’s Growth: Evidence from Pakistan

Do Macroeconomic Factors Affect the Composite Stock Price Index?

The Model of Stock Market Participation with an Emphasis on Cultural and Social Factors: A Grounded Theory Approach

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