A Study on Impact of Macroeconomic Factors on Stock Market Returns of Afro - Asian Countries
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Abstract
The study is about, the impact of macro-economic factors on0stock market0returns of Afro - Asian0Countries. The important indicators of macro-economic to measure the impact of the same. The tests state that Consumer Price Index factors which influence the stock markets are considered. The present effort is to analyse the various factors affecting the fluctuations of stock market returns, to compare return on investment with African and Asian stock markets, to test the behavior and correlation of the variables for a time period of (2004 - 2018) over 15 years, for investors to understand the stock exchanges which gives better returns on their investments. This study has undergone various tests like Unit Root Test, Panel OLS0Regression, Fixed Effect 0 Model, Random Effect0Model and Hausman Test, Stocks0traded total value0% of GDP (STOFGDP) 0and Stocks traded0turnover ratio0of domestic shares (STDOMES) is affecting Asian0markets in particular and Consumer Price Index, Purchasing Power Parity and Stocks traded turnover ratio of domestic shares (STDOMES) is influencing African markets specifically. And few common variables were found to enforce both African and Asian countries namely Consumer Price Index, Interest rates, Lending Interest Rates, Stocks traded0total value % of GDP0 (STOFGDP) and Stocks traded0turnover ratio of domestic0shares (STDOMES) are shown to a0have a positive impact on the fluctuations of stock market returns.