Corruption, secteur bancaire et développement du marché boursier: cas des pays de la zone EURO

Corruption, the banking sector and the development of the stock market: the case of the countries of the EURO zone

Ibtissem Missaoui and Jaleleddine Ben Rejeb

MPRA Paper from University Library of Munich, Germany

Abstract: Through this study we have tried to assess the effects of corruption and the development of the banking system on the development of the stock market of a group of 11 countries in the EURO zone over the period 2006-2015, using a dynamic panel data model.The key findings of this empirical trial are a positive relationship between the level of corruption and the improvement of the financial system. We observe a negative relationship between the development of the banking sector and the development of the stock market. This article also shows that the capital ratio of banks on assets and savings are important determinants of the development of the stock market in the countries of the euro zone. In this study, we also examine the effect of the interaction between corruption and the development of the banking system on the stock market. We find a negative relationship between the interaction term and the development of the stock market. This result shows that the devastating effects of corruption in these countries have an excessive impact on the development of the banking sector.

Keywords: Keyword:; -Market; capitalization; -; GDP; -; corruption; -; development; of; the; banking; sector; -; stock; market; development; -; euro; area; countries; -; interaction. (search for similar items in EconPapers)
JEL-codes: G1 (search for similar items in EconPapers)
Date: 2017-01-01
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