Do financial structures affect exchange rate and stock price interaction? Evidence from emerging markets

Tang, Xiaobo; Yao, Xingyuan

doi:10.1016/j.ememar.2017.10.004

Cited by 44 publications

(25 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…One of the factors that affect stock prices is an exchange rate. Tang & Yao (2018) conclude that there is a link between exchange rates and stock prices through the inner-financial structure. Caporale et al, (2014), Roberado et al, (2016) also found the relationship between exchange rate and stock prices.…”

mentioning

confidence: 79%

Determinant of Stock Price: Evidence on Food and Beverage Companies in Indonesia

2019

View full text Add to dashboard Cite

One aspect that concerns investors in valuing stocks is financial performance. The better the company's financial performance will increase the demand for the company's shares, so that it can also increase the company's stock price. The purpose of this research to examine the effect of Financial Performance which is measured by using Earning per Share, Net Profit Margin, Retun On Equity, Firm Size which is measured by Total Revenue, Total Asset,, and Corporate Social Responsibility Disclosure which is measured by Economic Aspects, Environmental Aspects,Social Aspect to the Extend of stock price on food and beverage sector companies in Indonesia Stock Exchange. The stock price data was used the stock price determined by the closing price.The sample collection method has been done by using purposive sampling method and eleven of eighteen companies, which are listed in Indonesia Stock Exchange in the years of 20013-2017, are used as the research samples. The method used in this study was Structural Equation Modeling Partial Least Square (SEM-PLS). The result of the research shows that the variable Financial Performance was significantly influenced stock price. variable Firms Size was significantly influenced stock price, and variable Corporate Social Responsibility Disclosure was significantly influenced stockprice.

show abstract

mentioning

confidence: 79%

Determinant of Stock Price: Evidence on Food and Beverage Companies in Indonesia

2019

View full text Add to dashboard Cite

show abstract

“…On one hand, extensive empirical research supports the traditional approach, which argues that movements in exchange rate result in stock price changes (Soenen, 1988;Nieh and Lee, 2001;Fang and Miller, 2002;Granger et al 2000;Tang and Yao, 2018;Wong, 2017;Smyth and Nandha, 2003;Liang et al 2015 among many others). On the other hand, ample empirical evidence lends support to the portfolio approach, suggesting that movements in stock market cause changes in exchange rates (See, for example, Smith 1992; Tang and Yao, 2018;Nieh and Lee, 2001;Stavarek, 2005;Yang and Doong, 2004; Lin, 2012 among many others). Ramasamy and Yeung (2005) explain these mixed results by sensitivity of the interaction to the business cycle fluctuations and structural changes within an economy.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Studies that found evidence in support of the portfolio approach mostly focused on developed countries (Ajayi and Mougouė 1996;Yang and Doong, 2004;Nieh and Lee, 2001;Stavarek, 2005). Following research in developed countries, the relationship between stock prices and exchange rates was also investigated in several emerging markets (Tang and Yao, 2018;Abdalla and Murinde, 1997;Tsen, 2016;Liang et al 2015). Ajayi and Mougouė (1996) investigate the relationship between the exchange rates and stock market for two groups of economies: Advanced countries and Asian emerging markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Exchange Rate and Stock Prices Interactions in Kazakhstan

Nurmakhanova¹

2019

EJEF

View full text Add to dashboard Cite

This study employs a sample from 1st October, 2007 to 31st December, 2017 from Kazakhstan Stock Exchange (KASE) to investigate the nature of the interaction between exchange rate sensitivity and stock market. First, we test the stationarity of time series using the ADF and PP tests. Additionally, the Johansen and Juselius cointegration procedures were employed for the bivariate as well as multivariate cases. Results of research demonstrated stationarity in differences of the time series and absence of long-run relationship between the variables in bivariate model. When the model is extended to incorporate money supply and reserves, results detect the evidence of cointegration. Moreover, Granger causality tests demonstrate strong bidirectional relationship between exchange rate and stock prices in Kazakhstan. Policy wise, the results suggest that monetary authorities in Kazakhstan in achieving their exchange rate policy objective could take into consideration stock market development.

show abstract

“…In the second stream, recent studies have considered the institutional hypothesis to be important for tourism inflow. Good governance enhances economic growth and promotes tourism inflow [12,26,41], as demonstrated by the fact that good governance reduces security risks, encourages investments and also stimulates tourism [42]. Ghalia, Fidrmuc, Samargandi, et al [43] use the gravity model to examine the effects of political risks, distance, and socio-economic factors in tourist flow, as well as tourist quality, and factors that stimulate the flow of tourists to the countries of origin and the absence of institutional quality and conflict.…”

Section: Brief Literature Review On Institutional Quality and Tourismmentioning

confidence: 99%

“…The time span is restricted by data availability constraints. The dependent variable, tourism inflows [12,38,51], is measured by two proxies, 1) the number of international tourism arrivals for sample country i at time t, and 2) revenue received from international tourists for country i at time t. The data for these two proxies are compiled from the World Bank, World Development Indicators. The explanatory variable, institutional quality is a composite index of Area 2 and Area 5 of the overall index provided by the Fraser Institute of Canada.…”

Section: Data and Variablesmentioning

confidence: 99%

Asymmetric Impact of Institutional Quality on Tourism Inflows Among Selected Asian Pacific Countries

et al. 2020

View full text Add to dashboard Cite

From an idealistic viewpoint, the existence of the tourism industry in a country/region is a blessing because of its anticipated sustainable economic benefits. To turn this idealistic state into a realistic one, institutions need to play a pivotal role in optimizing the desired incentives. The present study examines the asymmetric role of institutional quality in stimulating tourism inflows (receipts and arrivals) in selected Asia Pacific countries involved in tourism. The previous literature has established that improving institutional quality attracts tourism inflows to a destination. However, the literature fails to identify the specific point (threshold level) above (below) which the relationship turns positive (negative). To the best of our knowledge, this is the first study that estimates the asymmetries in the nexus of institutions and tourism inflows, using robust nonlinear autoregressive distributed lag approach. Our results show that the tourism inflow in Asian Pacific countries responds asymmetrically to any changes in institutional quality, and there is a single threshold of 7.52 points, where the impact of institutional quality reverses. We conclude that our findings are robust to the alternative measures of tourism inflows. The study offers useful policy inputs for devising short and long-run policies for the betterment of the institutional framework in the region by understanding the asymmetric impact of institutional quality on tourism inflow.

show abstract

Do financial structures affect exchange rate and stock price interaction? Evidence from emerging markets

Cited by 44 publications

References 35 publications

Determinant of Stock Price: Evidence on Food and Beverage Companies in Indonesia

Determinant of Stock Price: Evidence on Food and Beverage Companies in Indonesia

Exchange Rate and Stock Prices Interactions in Kazakhstan

Asymmetric Impact of Institutional Quality on Tourism Inflows Among Selected Asian Pacific Countries

Contact Info

Product

Resources

About