 On the effect of full-fledged IT adoption on stock returns and their conditional volatility: Evidence from propensity score matchingIchrak Dridi and Adel Boughrara The Quarterly Review of Economics and Finance, 2021, vol. 80, issue C, 179-194 Abstract: Applied research on central banking has attempted to assess the effects of adopting full-fledged inflation targeting on several macroeconomic variables, while the impact of financial variables has been under-researched so far. This paper fills this gap by assessing and quantifying the effect of full-fledged inflation targeting on stock returns and their conditional volatility. For this purpose, it implements the Propensity Score Matching (PSM), which is immune against reverse-causality, self-selection and omitted-variable biases, on a sample of advanced countries over 1990:Q1–2015:Q1 period. The results suggest that full-fledged inflation targeting is effective in boosting stock market returns and reducing volatility. Keywords: Full-fledged inflation targeting; Propensity score matching; Stock market returns; Conditional volatility (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:80:y:2021:i:c:p:179-194 DOI: 10.1016/j.qref.2021.02.007 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
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