Skip to main content

Monetary Expansion and Stock Returns in Pakistan

The objective of the paper is to examine the causal relationship between money supply and stock prices in Pakistan. Two measures of money stocks (M1 and M2) and six stock price indices (general and five sectoral) were taken for the period June 1991 to June 1999.
The co-integration analysis indicates a long run relationship between stock prices and money supply for both M1 and M2. The Error Correction Model, on the other hand, does not endorse the long run relationship between stock prices and M1. Regarding long run relationship between stock prices and M2, the model suggests a unidirectional causality running from M2 to stock prices. The model also shows the evidence of short run effects of M2 on stock prices. The analysis suggests that the stock market is not efficient with respect to money supply.

* The Pakistan Development Review 38 : 4 Part II (Winter 1999) pp. 769–776
Download
Labels:

Popular posts from this blog

Call for Papers

1. Special issue call for papers from Internationa l Journal of Conflict Management Areas / Topics Conflict Conflict management Dispute resolution Fairness Justice Mediation and arbitration Negotiation Peace studies Related topics Manuscript submission deadline: 28-11-2011. For details visit International Journal of Conflict Management 2. Inauguration issue call for papers from Far East Journal of Psychology and Business Areas / Topics Money, Banking, Finance and Investment Psychology and Human Related Issues Marketing Security Markets, Business Economics Accounting Practices Social Issues and Public policy  Management Organization  Statistics and Econometrics  Administration and Management  International Trade Industrial Relations and Labor  Business Communication  Mass Communication  History and Psychology Cold War and Business  Inter-Cultural Encounters  Peace and Unity for Business Growth Deadline for Su...
Read more

The Development of Female Global Managers: The Role of Mentoring and Networking

Abstract of Research Paper: This paper explores the role of mentoring and networking in the career development of global female managers. The paper is based on data collected from interviews with 50 senior female managers. The voices of the female managers illustrate some of the difficulties associated with informal organisational processes, in particular mentoring and networking, which hinder their career development. The findings confirm that female managers can miss out on global appointments because they lack mentors, role models, sponsorship, or access to appropriate networks – all of which are commonly available to their male counterparts. The interviewees suggest that men, as the dominant group, may want to maintain their dominance by excluding women from the informal interactions of mentoring and networking. The findings further suggest that if females had more access to networks and mentors they could be socialised in both the formal and informal norms of the organisation an...
Read more

FACTOR ANALYSIS

Factor analysis is a collection of methods used to examine how underlying constructs influence the responses on a number of measured variables. There are basically two types of factor analysis: exploratory and confirmatory. Exploratory factor analysis (EFA) attempts to discover the nature of the constructs influencing a set of responses. Confirmatory factor analysis (CFA) tests whether a specified set of constructs is influencing responses in a predicted way. SPSS only has the capability to perform EFA. CFAs require a program with the ability to perform structural equation modeling, such as LISREL or AMOS. The primary objectives of an EFA are to determine the number of factors influencing a set of measures and the strength of the relationship between each factor and each observed measure. To perform an EFA, you first identify a set of variables that you want to analyze. SPSS will then examine the correlation matrix between those variables to identify those that tend to vary togeth...
Read more