...market is a place for listed companies to raise capital .Companies can use the capital for continuing operating activities and expand business. However, the investors are explained to get a positive return from dividend and capital gain in the stock market. Based on the history, the economic condition will influence stock market. For instances, Malaysia faced deflation during the Asian crisis in years 1997. It caused the KLCI index sharply reduced from 1207.43 to 470.43. It have been shown that the investors need to predict the stock prices based on the macro factors to get an abnormal return from stock market There were a lot of researches to study the relationship between macroeconomics variables and stock returns. It is important to study the interaction of macroeconomics factor and stock return. Based on the study, the public can identify which factors can influence the stock market and use the knowledge to predict movement of stock price. According to Wongbangpo & Sharma (2002), the research can reveal the functions of stock market in identify the change in economic condition and also can predict the future performance of stock market. Besides, the study will be useful for the stock market participators. Clare & Priestley (1998) said that the study of the risk factor relationship of stock market will be useful for corporate manager to undertake cost of capital calculation. Moreover, the fund managers can use the information from the result of study to make an effective...
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...consumers. Macroeconomic factors are the factors which affect the wider economy. In other words these factors seem to summarize the picture of economy. Macroeconomic variables include economic output, unemployment, inflation, interest rates, money supply, exchange rate, foreign reserves, savings and investment. Variables used in study: • Consumer Price Index (CPI) Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the CPI) over time. A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. It captures the retail price movement for different sections of consumers. In India, the Consumer Price Index or CPI measures changes in the prices paid by consumers for a basket of goods and services. It is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as...
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...stages. When the inflation happens, it involved each part of the community. Household, workers, investor, and even pensioner affected by the inflation. But the effect is also various, certain people get the benefit from it and the others get the losses. It depend on how the money use to us, either it been used to pay debt or to pay goods we buy. Recently, the world has experience the inflation once again that affected most of the country in the world. It caused by the increasing in price of world crude oil as a main reason. In Malaysia In general, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the price level increases, each unit of currency buys fewer goods and services. Meanwhile, inflation rate is the annually increase of percentage in the price of goods and services. When the price level rises rapidly, the inflation rate is high, and when the price level rises slowly, the inflation rate is low. When the price falls, the inflation rate is negative. For your information, the average...
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...country in the last decade were concentrated in these cities. Nigeria’s has a burgeoning real estate sector, which by the GDP rebasing exercise in the country in April 2014, was discovered to be the fastest growing and sixth largest sector in the Nigerian economy, explaining the rising level of investment in the sector by both local and foreign investors. Foreign direct investment (FDI) is defined as “an investment in which a firm acquires a substantial controlling interest in a foreign firm (above 10 percent share) or sets up a subsidiary in a foreign country” (Chen, 2000). The International Monetary Fund adds “the investor’s purpose is to have an effective voice in the management of the enterprise”. FDI is not only a financial transaction between two foreign enterprises, in which one company invests in the capital of the other one. This transaction gives to the investor lasting management of the company and a direct control over assets. FDI investors take in whole or in part the control of the...
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...other use of this project will be done. MANAGEMENT RESEARCH PROJECT is a part of syllabus in MBA programme of CMS – DDU , Nadiad, Gujarat. Name : Charmi S. Shah Signature : Date : 21st February, 2014 CENTRE FOR MANAGEMENT STUDIES DHARMSINH DESAI UNIVERSITY CERTIFICATE This is to certify that the Management Research Project has been Carried Out under the theme “FINANCIAL CRISIS AND ITS IMPACT ON STOCK MARKET”. This report is the bonafide work of Ms. Charmi Shah Roll Number 1542 of MBA Semester IV during the academic year 2012-14. Faculty Guide: Prof. Falguni Pandya Date: 21/02/2014 Head of Department: Dr. Naresh Patel Date:21/02/2014 Preface Practical knowledge by way of research is a step to bride up the gap between the theoretical studies of finance and its practicality in the world. Hence D.D.University have included it as part of our syllabus. I undertook this study for understanding the stock market more deeply. I got interested in this stock market after I studied it in one of the subject of my specialization. As already I had sufficient knowledge about stock market, I got more interested in doing research about the financial crisis on this stock market. I selected this topic...
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...Dictionary of Economics A & C Black London First published in Great Britain in 2003 Reprinted 2006 A & C Black Publishers Ltd 38 Soho Square, London W1D 3HB © P. H. Collin 2003 All rights reserved. No part of this publication may be reproduced in any form or by any means without the permission of the publishers A CIP record for this book is available from the British Library eISBN-13: 978-1-4081-0221-3 Text Production and Proofreading Heather Bateman, Katy McAdam A & C Black uses paper produced with elemental chlorine-free pulp, harvested from managed sustainable forests. Text typeset by A & C Black Printed in Italy by Legoprint Preface Economics is the basis of our daily lives, even if we do not always realise it. Whether it is an explanation of how firms work, or people vote, or customers buy, or governments subsidise, economists have examined evidence and produced theories which can be checked against practice. This book aims to cover the main aspects of the study of economics which students will need to learn when studying for examinations at various levels. The book will also be useful for the general reader who comes across these terms in the financial pages of newspapers as well as in specialist magazines. The dictionary gives succinct explanations of the 3,000 most frequently found terms. It also covers the many abbreviations which are often used in writing on economic subjects. Entries are also given for prominent economists, from Jeremy...
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...Macroeconomic Theory Macroeconomic Theory A Dynamic General Equilibrium Approach Michael Wickens Princeton University Press Princeton and Oxford Copyright © 2008 by Princeton University Press Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, 3 Market Place, Woodstock, Oxfordshire OX20 1SY All Rights Reserved ? A catalogue record for this book is available from the British Library This book has been composed in Times and typeset by T&T Productions Ltd, London Printed on acid-free paper press.princeton.edu Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ∞ Contents Preface 1 Introduction 1.1 Dynamic General Equilibrium versus Traditional Macroeconomics 1.2 Traditional Macroeconomics 1.3 Dynamic General Equilibrium Macroeconomics 1.4 This Book The Centralized Economy 2.1 Introduction 2.2 The Basic Dynamic General Equilibrium Closed Economy 2.3 Golden Rule Solution 2.3.1 The Steady State 2.3.2 The Dynamics of the Golden Rule 2.4 Optimal Solution 2.4.1 Derivation of the Fundamental Euler Equation 2.4.2 Interpretation of the Euler Equation 2.4.3 Intertemporal Production Possibility Frontier 2.4.4 Graphical Representation of the Solution 2.4.5 Static Equilibrium Solution 2.4.6 Dynamics of the Optimal Solution 2.4.7 Algebraic Analysis of the Saddlepath Dynamics 2.5 Real-Business-Cycle Dynamics 2.5.1 The Business Cycle 2.5.2 Permanent Technology Shocks 2.5.3 Temporary...
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