The Relationship Between Stock Prices And Exchange Rates PDF Download
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| Author | : Parham Parsva |
| Publisher | : LAP Lambert Academic Publishing |
| Total Pages | : 176 |
| Release | : 2012 |
| Genre | : |
| ISBN | : 9783659223105 |
Download The Relationship Between Stock Prices and Exchange Rates Book in PDF, ePub and Kindle
In spite of fast economic growth in the Middle East, less attention has been paid by researchers and investigators to the region compared with other emerging markets in the Europe, Asia-Pacific region, etc. This study investigates the relationship between stock prices and exchange rates in ten Middle Eastern countries, namely, Bahrain, Egypt, Iran, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) before and after the 2007 global financial crisis. The main findings from this research provide valuable insights into the characteristics and patterns of Middle Eastern stock markets and foreign exchange markets for policymakers, particularly in the area of exchange rate management.
| Author | : Fauziah Ifa |
| Publisher | : LAP Lambert Academic Publishing |
| Total Pages | : 120 |
| Release | : 2016-01-04 |
| Genre | : |
| ISBN | : 9783659819865 |
Download Dynamic Relationship Between Stock Prices and Exchange Rates in Asia Book in PDF, ePub and Kindle
There are two different and conflicting models to determine the relationship between exchange rate and stock prices. The first model, "Flow-Oriented" states that currency or exchange rate changes affect the competitiveness of a company, which in turn affect the company's revenues or cost of funds and the subsequent impact on the company's stock price. Meanwhile, according to the two models namely "Stock-oriented" which emphasizes the role of capital account transactions stated that the rise in stock returns (rising stock market) would attract capital flows which in turn will increase the domestic money permintaanmata and cause exchange rate to appreciate. Therefore, this study was conducted to determine if there cointegration and causality relationship between exchange rates and stock prices in Asia. The objects of this study are Indonesia, Singapore, Taiwan, Malaysia, China, South Korea, Japan, Hong Kong, Thailand, and India with the study period January 2009 to December 2013. Data used are secondary data in the form of monthly data from the foreign exchange market (exchange rate) and capital markets (stock index).
| Author | : Yifeng Zhang |
| Publisher | : |
| Total Pages | : 38 |
| Release | : 2016 |
| Genre | : Foreign exchange rates |
| ISBN | : |
Download Exploring the Relationship Between Stock Prices and Exchange Rates in North America and China Book in PDF, ePub and Kindle
This report explores the relationship between stock prices and exchange rates in North America and China during the post-crisis period. It is found that there is a stable long-run relationship between stock prices and exchange rates in Canada and China, but not for the US. Another finding is that Canadian exchange rates and stock prices exhibit bi-directional Granger causality, which supports both "flow-oriented" model and "stock-oriented" model. Conversely, the two financial variables in China interact in a manner consistent with the "flow-oriented" model. On the other hand, no Granger causality is found between these two financial variables for the US in either direction. Finally, this report provides a few implications for monetary policy makers and global investors.
| Author | : Justin Nelson Michael |
| Publisher | : |
| Total Pages | : 9 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
Download The Dynamic Relationship Between Stock Prices and Exchange Rate - An Eygptian Experience Book in PDF, ePub and Kindle
The economy of a nation is driven by a robust securities market. The growth of a nation is indubitably based on the strength and stability of its secondary market systems and intermediaries. The mobilization of funds and its flow into diverse sectors of the economy in a regulated manner signifies dynamism and progress. The Egyptian economy has been in a trajectory of progress right since the establishment of its secondary market and its stock index EGX 30 in 2009. The Egyptian pound (EGP) has been focus of Egyptian monetary policy due to undue stress on the pound during the recent years. The Central Bank of Egypt (CBE) has been in the forefront of all monetary measures to stabilise the pound. The growth and development of a nation is charted by the changing economic and business environment. Any change in the foreign exchange market is sure to leave its footprint in the secondary market. All researchers in the field of foreign exchange management have been intrigued by the relationship between secondary market and forex market. Many an investigation has been undertaken to find if there is a significant relation between stock prices and exchange rates. The recent transition in Egyptian economy to a floating rate mechanism and efforts to stabilize the pound have attracted researchers to find out the effects of such a monetary change. The relationship between securities market and forex market has to be given a serious thought before any decision pertaining to forex market policy and regulation. This study analyses the dynamic relationship between stock market and exchange rate in Egypt using Engle-Granger cointegration methodology and Granger causality test.
| Author | : International Monetary Fund |
| Publisher | : International Monetary Fund |
| Total Pages | : 52 |
| Release | : 1989-05-12 |
| Genre | : Business & Economics |
| ISBN | : 1451974493 |
Download Exchange Rate Movements and International Interdependence of Stock Markets Book in PDF, ePub and Kindle
This paper investigates linkages between stock markets in seven industrialized countries since 1974. Empirical evidence shows that both nominal and real stock prices (and returns) are strongly positively correlated across countries, and that nominal exchange rate changes do not have systematic effects on nominal stock prices. A two-country theoretical model is developed and an attempt is made to reconcile the empirical findings with the properties of this model. Independent evidence on the main sources of shocks is used to argue that the time-varying correlation in the data can be reconciled with the predictions of the theory.
| Author | : Yakov Amihud |
| Publisher | : Beard Books |
| Total Pages | : 268 |
| Release | : 2003 |
| Genre | : Business & Economics |
| ISBN | : 9781587981593 |
Download Exchange Rates and Corporate Performance Book in PDF, ePub and Kindle
This is a reprint of a previously published book. It consists of a series of papers by experts in the field on how the exchange rate volatility of the 1980s affected the financial policies of international firms.
| Author | : Paul Alagidede |
| Publisher | : |
| Total Pages | : |
| Release | : 2010 |
| Genre | : |
| ISBN | : |
Download Causal Relationship Between Stock Prices and Exchange Rates Book in PDF, ePub and Kindle
| Author | : Daniel Stavarek |
| Publisher | : |
| Total Pages | : 21 |
| Release | : 2009 |
| Genre | : |
| ISBN | : |
Download Stock Prices and Exchange Rates in the EU and the United States Book in PDF, ePub and Kindle
This paper investigates the nature of the causal relationship between stock prices and effective exchange rates in four old EU-member countries (Austria, France, Germany, and the UK), four new EU-member countries (Czech Republic, Hungary, Poland, and Slovakia) and in the USA. Both the long-run and short-run causalities between these variables are explored using monthly data. The paper also tries to answer the question whether the linkages between analyzed economic variables are of the similar intensity and direction in the old and new part of the EU and how has been the relationship changing over the analyzed period. The results show much stronger causality in countries with developed capital and foreign exchange markets (old EU-member countries and the USA) than in the new-comes. Evidence also suggests more powerful long-run as well as short-run causal relations in the period 1993-2003 than during 1970-1992. Causalities seem to be predominantly unidirectional with a direction running from stock prices to exchange rates. Finally, we also detected much stronger relations applying real effective exchange rate than nominal effective exchange rate.
| Author | : Sorin Dumitrescu |
| Publisher | : |
| Total Pages | : 18 |
| Release | : 2009 |
| Genre | : |
| ISBN | : |
Download On the Causal Relationship between Stock Prices and Exchange Rates Book in PDF, ePub and Kindle
The paper investigates the dynamic links between stock prices and exchange rates in Romania, considering the changes in the exchange rate regime occurred after 1997. The research employs advanced econometric methods - cointegration and innovation accounting techniques, in order to capture the relationship between stock prices, exchange rates and other macroeconomic variables, applied to monthly data over the January 1998 - September 2007 period. We identify a long-term equilibrium relationship between stock prices, official reserves and nominal effective exchange rates, while the real exchange rate and the money supply are found not to be statistically significant in any of the models. The signs of variables in the cointegrating vectors are consistent with economic reasoning: we find there is a positive relationship between money supply and stock prices, on one hand, and between the nominal effective exchange rate and stock prices, on the other hand. Also, there is a negative relationship between official reserves and stock prices, and between the real effective exchange rate and stock prices. Conversely, while over the short run stock prices react mainly to their own one standard deviation shocks, over the long run we observe that shocks in money supply and reserves generate responses from stock prices.
| Author | : Yaşar Köse |
| Publisher | : |
| Total Pages | : 9 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
Download On the Causality Between Stock Prices and Exchange Rates Book in PDF, ePub and Kindle
The aim of this paper is to investigate the existence and direction of relationship between stock prices and exchange rates for Turkish financial market. Granger (1969) causality testing methodology was employed to reveal the nature of relationship between the two variables. This work contributes to the existing body of literature in the way that in Turkish financial market, there is a uni-directional causality running from stock prices to exchange rates using the daily observations for the sample period, which runs from February 23, 2001 to November 4, 2009. Also, the model used in this study extends the scope of exchange rate variables including a total of five currencies í US dollar, Euro, Japanese Yen, Pound Sterling, Swiss Franc and two baskets of currencies of Undersecretariat of Foreign Trade of Turkey. This evidence has implications for the policy makers and economic actors to perceive the movements in stock prices as a dynamic determinant, which may affect the success of their exchange rate policies.
