doi: 10.7763/IJTEF.2011.V2.155
Stock Market Deregulation, Macroeconomic Variables and Stock Market Performances
Noor Azryani Auzairy 1
,
Rubi Ahmad 2
,
Catherine S F Ho 3
- 1 School of Management, Faculty of Economics and Management, University Kebangsaan Malaysia, UKM Bangi, Selangor, Malaysia.
- 2 Finance and Banking Department, Faculty of Business and Accountancy, University Malaya, Malaysia.
- 3 Financial Services and Risk Management Dept Faculty of Business Management Universiti Teknologi MARA 40450 Shah Alam Selangor Malaysia, Selangor, Malaysia.
Abstract
The purpose of this paper is to explore the effects of subsequent stock market deregulations on stock market performances in ASEAN-3: Malaysia, Thailand and Indonesia. The study focuses on the impact of subsequent stock market deregulations instead of the first stock market deregulation. Subsequent stock market deregulation is defined as the percentage change in foreign ownership of local equities from 1997. The effects of subsequent stock market deregulation are analyzed with and without the inclusion of macroeconomic variables. Thus, this study also explores the effects of macroeconomic factors: exchange rates, interest rates, oil prices and market liquidity, on stock market performances. Univariate and multivariate regression analyses on weekly basis, with 53-trading week event window, are the applied methodology. The empirical findings support two conclusions: firstly, subsequent stock market deregulation policies implemented in and after 1997 are not significantly effective in improving stock market performances of liberalizing countries; and secondly, macroeconomic variables have significant impact on the performances of liberalizing countries’ stock markets in some of these events. The results would assist government authorities in making their decisions related to stock market deregulation.
Keywords
- IAPM
- macroeconomics
- market deregulation
- and market performances
How to Cite
Noor Azryani Auzairy, Rubi Ahmad, and Catherine S F Ho, "Stock Market Deregulation, Macroeconomic Variables and Stock Market Performances," International Journal of Trade, Economics and Finance, vol. 2, no. 6, pp. 495-500, 2011. https://doi.org/10.7763/IJTEF.2011.V2.155
Copyright & License
Copyright © 2011 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).