Behavior of Banks’ Stock Market Prices during Long-Term Crises

Ruzgar, Nursel Selver; Chua-Chow, Clare

doi:10.3390/ijfs11010031

Cited by 4 publications

(2 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The study employs multiple regression analysis to explore the relationship between the stock prices of banks and the selected macroeconomic indicators, as it has been proven quantitative technique for the same in a few prior studies [13][14][15][16][17]. The regression model is specified as follows:…”

Section: Discussionmentioning

confidence: 99%

Effects of Inflation, Ten-Year Bond Yield Rate, and VIX Index on the Stock Prices of Banks Across All Three Market Capitalizations in India

Nagvekar,

Kamath,

Simha

et al. 2024

J. Comput. Mech. Manag

View full text Add to dashboard Cite

This study investigates the impact of critical economic factors—namely, inflation, the 10-year bond yield rate, and the VIX index—on the stock prices of banks operating across different market capitalization segments in India. Through a comprehensive regression analysis framework, this research quantifies the relationships between these economic factors and bank stock prices while accounting for potential variances across large-cap, mid-cap, and small-cap banks. Utilizing data from the past five years, this analysis not only provides a nuanced understanding of how these macroeconomic indicators influence bank stock prices but also explores the specific effects on banks of varying market capitalizations. The findings reveal that small-cap companies are predominantly influenced by internal management decisions and capital allocation, whereas the consumer price index significantly predicts and reflects stock price behavior. Conversely, the bond yield rate and VIX index show minimal impact on stock prices. This study offers valuable insights for investors, policymakers, and financial institutions, aiding in the development of informed investment strategies and risk management practices.

show abstract

Section: Discussionmentioning

confidence: 99%

Effects of Inflation, Ten-Year Bond Yield Rate, and VIX Index on the Stock Prices of Banks Across All Three Market Capitalizations in India

Nagvekar,

Kamath,

Simha

et al. 2024

J. Comput. Mech. Manag

View full text Add to dashboard Cite

show abstract

“…Castanias [12] examined variability in stock market prices, challenging the assumption that price changes are drawn from a stationary distribution and suggesting that the arrival rate of broad economic information influences this variability. Ruzgar et al [13] analyzed Canadian banks' stock prices during financial crises, finding that certain indexes positively influenced bank stocks during these times. Ibrahim [14] explored how stock market returns can predict actual output in Malaysia and found that stock returns have a predictive power for the economy's output in short forecasting periods.…”

Section: General Studies On the Stock Marketmentioning

confidence: 99%

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

Alsanousi,

Alqahtani,

Makki

et al. 2024

Information

View full text Add to dashboard Cite

This study presents a hybrid multicriteria decision-making approach for evaluating stocks in the Saudi Stock Market. The objective is to provide investors and stakeholders with a robust evaluation methodology to inform their investment decisions. With a market value of USD 2.89 trillion dollars in September 2022, the Saudi Stock Market is of significant importance for the country’s economy. However, navigating the complexities of stock market performance poses investment challenges. This study employs the best–worst method and the technique for order preference by similarity to identify an ideal solution to address these challenges. Utilizing data from the Saudi Stock Market (Tadawul), this study evaluates stock performance based on financial criteria, including return on equity, return on assets, net profit margin, and asset turnover. The findings reveal valuable insights, particularly in the banking sector, which exhibited the highest net profit margin ratios among sectors. The hybrid multicriteria decision-making-based approach enhances investment decisions. This research provides a foundation for future investigations, facilitating a deeper exploration and analysis of additional aspects of the Saudi Stock Market’s performance. The developed methodology and findings have implications for investors and stakeholders, aiding their investment decisions and maximizing returns.

show abstract

Impact of Price Indexes on Stock Market Prices of Banks in Financial Crises

Ruzgar

2023

Wseas Transactions on Business and Economics

View full text Add to dashboard Cite

During times of crises, stock markets often experience heightened volatility, and the banking sector is particularly susceptible. This study aims to investigate the impact of index values on the daily closing prices of five banks during five major financial crises in recent decades, using logistic regression analyses. The results show that in five crisis periods, different indexes have a significant impact on the daily stock price of banks. Although there is no pattern found for different crisis periods because each bank has different investment instruments, the index, ind38- CFMRC (VWI) Over $2, seems to have a highly significant impact on the crisis periods I-IV and ind37- CFMRC (DEWI) Over $2 plays a significant role in predicting the outcomes. The findings indicate that banks should give particular focus to their investment instruments, particularly value-weighted indexes (VWI) over $2 and equal-weighted indexes (DEWI) over $2 when any indications of a crisis arise. This is crucial because these index values influence the daily closing prices of banks and could potentially contribute to economic crises. Moreover, larger banks are more sensitive to changes in the index values than smaller banks, attributed to variations in their investment amounts.

show abstract

Behavior of Banks’ Stock Market Prices during Long-Term Crises

Cited by 4 publications

References 34 publications

Effects of Inflation, Ten-Year Bond Yield Rate, and VIX Index on the Stock Prices of Banks Across All Three Market Capitalizations in India

Effects of Inflation, Ten-Year Bond Yield Rate, and VIX Index on the Stock Prices of Banks Across All Three Market Capitalizations in India

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

Impact of Price Indexes on Stock Market Prices of Banks in Financial Crises

Contact Info

Product

Resources

About