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Banking liquidity and stock market prices in three countries in ASEAN

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dc.contributor.authorTin-fah, Chung
dc.contributor.authorAriff, Mohamed
dc.contributor.authorShamsher Mohamad Ramadili Mohd
dc.date.accessioned2017-05-26T07:00:35Z
dc.date.available2017-05-26T07:00:35Z
dc.date.issued2017
dc.description.abstractThis paper reports evidence of a banking liquidity impact on stock prices in the three Asean countries. Banking liquidity impacts suggested by Friedman is yet to be fully investigated nor verified despite several attempts. If improved liquidity of banks leads to credit expansion, which in turn leads to more positive net present value projects undertaken by firms, earnings of the latter must go up, and hence the share prices should rise. This link is worth an investigation. According to an influential of the US stock market, up to 52% of share returns are due to changes in the macro economy. Using a 3-equation structural model as well as employing corrections for cross-section dependence, we examine the link between money supply, liquidity and stock prices over 2001:4Q and 2012:2Q in three developing countries. It is found money supply changes lead to a positive liquidity effect and banking liquidity impacts share market prices positively. These findings are new and in support of Friedman's liquidity proposition, and also constitute evidence of a banking liquidity having a positive effect on asset prices.en_US
dc.identifier.citationTin-fah, Chung and Ariff, Mohamed and Ramadili Mohd, Shamsher Mohamad. (2017). Banking liquidity and stock market prices in three countries in ASEAN. Pertanika Journal Social Sciences & Humanities, 25 (1), pp. 291-316.en_US
dc.identifier.issn0128-7702
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/2530
dc.languageEnglish
dc.language.isoenen_US
dc.publisherUniversiti Putra Malaysia Pressen_US
dc.rights2017. Universiti Putra Malaysia Press
dc.sourceSEDONA
dc.subjectASEAN countriesen_US
dc.subjectLiquidityen_US
dc.subjectBubbleen_US
dc.subjectPooled mean groupen_US
dc.subjectDynamic Fixed Effectsen_US
dc.subjectCointegrationen_US
dc.subjectStructural breaken_US
dc.subjectPanel Unit Rootsen_US
dc.titleBanking liquidity and stock market prices in three countries in ASEANen_US
dc.typeJournal Articleen_US
dlc.maintopicConventional finance
dlc.subtopicCapital markets
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional financeen_US
ikr.topic.subtopicConventional financeen_US
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relation.isAuthorOfPublication.latestForDiscovery33b91dde-0170-454c-8f2b-ec4b208837b9
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