The Impact of Macroeconomic Variables on Stock Market Performance: A Case of Malaysia
Journal Title: Edelweiss Applied Science and Technology - Year 2018, Vol 2, Issue 1
Abstract
The importance of the stock market in the development of the economy of a country can be directly linked to the governance, appropriate and effective regulatory framework designed by the policymakers. Stock market plays a very significant role in promoting capital formation and sustaining the economic growth of a country. It efficiently allocates scarce resources which are used to finance different sort of projects, leading to the prosperity and growth of the economy. Moreover, it also serves as a vehicle for risk diversification associated with projects, which helps to minimize the uncertainty regarding investment returns. Olweny and Kimani (2011) have argued that stock market facilitates the investment of surplus funds into additional financial instruments that better match their liquidity preference and risk appetite. According to Nordin & Nordin (2016), at the end of 2010 the Malaysian stock market capitalization and debt outstanding stood at 165% and 97% of nominal GDP respectively. This figures show that the Malaysian capital market is quite big relatively to the Malaysian economy. Therefore, taking into account the size of the Malaysian capital market, it is possible that this market could significantly contribute to the economic growth of the country.
Authors and Affiliations
Dercio Fernando Filipe Chauque
Keywords
Related Articles
- EP ID EP398874
- DOI -
- Views 194
- Downloads 0
How Can The Nanomaterial Surfaces Be Highly Cleaned?
The induced contaminations (e.g polymer residues or impurities in air) on nanomaterial surfaces have been a serious problem to probe their intrinsic properties and for unique applications in surface chemistry, electronic...
Estimated Stock Price Based on Company Communications: Mind Genomics and Cognitive Economics as knowledge-Creation Tools for Behavioral Finance
Respondents estimated the price of a share of stock for a company, based upon a set of short vignettes, one estimate for each vignette. The vignettes comprised 2-4 elements-statements selected from four groups: WHO prese...
Challenges and Prospects of Community Based
The main objective of this study was to assess the challenges and prospects of community-based ecotourism in the Maichew cluster, a case of Ofla woreda. Community based eco-tourism has become rapidly the most fundamental...
Unique Case of Alpha 1-Antitrypsin Deficiency Causing Decreased Protein-C and S Activity Leading to DVT and Pulmonary Embolism
Although alpha-1 antitrypsin deficiency (AATD) is generally considered to be rare, estimates that 80,000 to 100,000 individuals in the United States have severe deficiency of AAT suggest that the disease is under-recogni...
Statistical Analysis of Obstetric Complications A Hospital Based Data in WadMedani Obstetrics and Gynecology Hospital, Gezira State, Sudan (2017)
Obstetric complications are an issue of concern in all countries and especially, in developing countries. The prevalence of obstetrics complications measures the development path and the implementation of motherhood init...