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

Sophee Sulong, Bin Balia and Qasim, Saleem and Zeeshan, Ahmed (2018) The Role of Stock Market Development in Influencing the Firms Performance: A Study Based on Pakistan Stock Market. International Journal of Economics and Finance, 10 (12). pp. 104-114. ISSN 1916-9728

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Abstract

The study aims to examine the role of stock market development in influencing the performance of non financial firms listed on Pakistan Stock Exchange from 2001 to 2017. Stock market development is a foremost issue of debate nowadays in emerging and developing economies. The theories and empirical studies strongly refer that stock market development is a tool to mobilize the savings and investment to promote the industrialization and firms performance. This study is an effort to establish the empirical relationship between stock market development and firm‟s performance. Three indicators of stock market development like stock market volatility,stock market liquidity and stock market liquidity are used for assessing the book and market performance of firms. For this purpose two-step system Generalized Method of Moments (GMM) estimator was employed in a dynamic panel model for empirical testing of hypothesis. The findings indicates that stock market volatility is a significant factor which which attempts to decrease the firm performance. On the other hand, stock market capitalization and stock market liquidity significantly causes the increase in firm firm performance.

Item Type: E-Article
Uncontrolled Keywords: stock market development, stock market capitalization, stock market liquidity, Pakistan Stock Exchange, firm performance, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak.
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Gani
Date Deposited: 28 Dec 2018 08:57
Last Modified: 19 Jun 2019 01:06
URI: http://ir.unimas.my/id/eprint/22930

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