Dual Perspective of Inflation toward Market Development

Muhammad Shaukat Malik, Mustabsar Awais, Waqar-ul-hassan, Faisal Hayat, Shahbaz Hussain and Aisha Khursheed

International Journal of Economics and Finance, 2016, vol. 8, issue 3, 225-231

Abstract: Stock markets are reflector of trade and economic prosperity across the globe, it comprised of multiple physical and mental components. Economists featured investors and their handsome cash balances among fundamental elements of capital markets. Financial experts along with practitioners developed economic models to engage shareholders by portraiting historical performance and future banefits of securities. Present study attempted to investigate the potential of inflation rate for casuing market returns under the concept of Ross (1976) pricing theory. CPI is used as proxy of inflation and KSE returns for measuring securities behaviours. Low inflationary (2000-2004) and High inflationary (2010-2014) durations as sample periods are privileged to empirically examine twofold intensity of CPI toward index of Pakistani markets. Linear regression analysis declared inflation rate as poor model for estimation of capital market returns, furthermore CPI resulted significant as well as insignificant casual relationship with positive and negative intensity toward KSE returns.

Keywords: Healthy investors; capital markets; financial models; securities returns and CPI (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://ccsenet.org/journal/index.php/ijef/article/view/56117/30796 (application/pdf)
http://ccsenet.org/journal/index.php/ijef/article/view/56117 (text/html)

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:ibn:ijefaa:v:8:y:2016:i:3:p:225-231

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().