Various macroeconomic factors that influence the business are: a economic growth economic activities refer to the level of buying and selling activities happening in an economy over a time period it is a highly complex activity and keeping accurate track of it is beyond comprehension. A macroeconomic factor is one that is related to the broad economy at the regional or national level and affects a large population rather than a few select individuals. A movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy b the level of diversifiable risk in an economy c movements in a stock portfolio's value that are attributable to microeconomic forces affecting the specific firms invested in. The impact of macroeconomic forces on stock returns in malaysia siti noorahayusolah, kosnandi (2011) the impact of macroeconomic forces on stock returns in malaysia masters thesis, universiti utara malaysia.
They examined the influence of macroeconomic variables on stock returns by testing seven macroeconomic variables: namely, term structure of interest rate, industrial production, risk premium, inflation, market return, and consumption and oil prices between 1953 and november 1984. In finance, arbitrage pricing theory (apt) is a general theory of asset pricing that holds that the expected return of a financial asset can be modeled as a linear function of various factors or theoretical market indices, where sensitivity to changes in each factor is represented by a factor-specific beta coefficient. The aim of this paper was to analyze the causal relationship between macroeconomic variables and stock prices in the var(vector autoregressive) modeling framework using secondary time series annual data from 1980 to 2012.
Macroeconomic factors and international shipping stock returns costas th grammenos1 & angelos g arkoulis1 1 city university business school, centre for shipping, trade and finance, frobisher crescent, barbican centre, london, ec2y 8hb. Investigation of the relationship between macroeconomic variables and the stock cash return macroeconomic variables, stock cash return index, vector autoregressive and prices several investigations were carried out to show the effects of economic forces in different countries on stock returns for example, arbitrage pricing theory by. The effects of macroeconomic factors on stock return of energy sector in shanghai stock market the impact of macroeconomic forces on stock return worldwide initially, the apt was applied by ross (1976, 1977) to explain jordan (1993) g. Macroeconomics (from the greek prefix makro-meaning large + economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole this includes regional, national, and global economies.
Waqar-ul-hassan, mustabsar awais-behavior of macroeconomic forces to predict stock returns: empirical evidence from global financial markets european academic research - vol iii, issue 3 / june 2015. In this paper, the cr&r (1986) results are tested to see whether the macroeconomic factors priced in the us market are applicable in turkey stock market, with adding new variable unemployment rate, because we expected a relation with the stock factors returns. Macroeconomic approach of the determinants of stock price movements in jordan imad zeyad ramadan full prof, department of finance, studied these factors at macroeconomic level few studies in jordan have tried to study the factors affecting the movements of stock prices which would reduce the value of stock returns, and therefore the. The dhaka stock exchange all-share price index (dsi) is used to represent the prices in the stock market while deposit interest rates, exchange rates, consumer price index (cpi), crude oil prices and broad money supply (m2) are selected to represent the macroeconomic variables affecting the stock prices. The main objective of this study is to give the insight of describing mixing accounting ratios and macroeconomic variables as the risk factors in iran the results indicate a significant relationship between book to market ratio, financial leverage, size factors and expected stock returns in the iranian market.
Selecting macroeconomic variables as explanatory factors of emerging stock market returns there are examples of this type of research that have examined the relationship between local macroeconomic variables and stock returns in esms, sa rosseconomic forces and the stock market journal of business, 59 (1986), pp 383-403. 158 economic forces and stock exchange prices stock prices, industrial production index, previous inflation rate and interest rate are important determinants for stock exchange prices. The cointegrating relationship between stock prices and macroeconomic variables empirical results obtained from ols estimations reveal 2008), and jordan (maghayreh, 2003) there is in fact a macroeconomic forces in affecting stock market returns they found a long-term equilibrium relationship between stock prices.
Returns when they try to explain economic forces that have an impact on stock markets these factors will be the basis for this analysis but with some adjustments made to enable the use of daily data. Performance on the taiwan stock market were macroeconomic forces followed by market selection, and finally investor expectations keywords: investment behavior, decision factors, and investment performance background the taiwan stock market was established in february 1962, and at that time, comprehensive stock trading led the. The impact of macro-economic factors on banking industry stock return in china lina tu 1 li li, dba 2 it shows that all macroeconomic factors have no impact on the banking industry stock return stock returns affect the wealth of investors which in turn affects the level of.