Financial deepening and stock market returns: panel data analyses for selected developed and developing economies

Matiur Rahman and Muhammad Mustafa

International Journal of Monetary Economics and Finance, 2017, vol. 10, issue 1, 96-109

Abstract: This paper analyses the effects of stock market turnover and liquidity, as measures of financial deepening, on stock market returns in selected 19 developed and 21 developing countries over 1988-2014 by implementing Pedroni's panel cointegration methodology and panel vector error-correction models. Stock market turnover contributes more to stock market returns than stock market liquidity in both selected developed and developing economies. However, the results are much weaker for developing countries than for developed countries.

Keywords: financial deepening; stock market returns; stock market turnover; stock market liquidity; panel cointegration; stock markets; developing countries; developed countries. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.inderscience.com/link.php?id=81287 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmefi:v:10:y:2017:i:1:p:96-109

Access Statistics for this article

More articles in International Journal of Monetary Economics and Finance from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().