Demographics Structure effect on Stock Prices: An Evidence from (China, India, Pakistan)

Abstract

This study investigates the impact of investment on the demographic structure of population i.e.; peak earning age and retirement age and its impact on the stock price of China, India and Pakistan. The current study employs data of these countries for the period of 1991to 2017 by using Autoregressive Regressive Distributed Lag (ARDL) approach. This study indicates that investment made by peak earning age investors has a positive and significant impact on stock price. Whereas, it is observed the retirement age has a significant and negative impact on stock price. The results of the study also suggested that in the peak earning age people invest in the stock market and at retirement age, they withdraw their investment from stock markets.