The dynamic relationship between economic crisis, macroeconomic variables and stock prices in Sri Lanka

نویسندگان

چکیده

Purpose This study aims to examine the short- and long-term equilibrium relationship between All share price index (ASPI), macroeconomic variables economic crisis in Sri Lanka. Design/methodology/approach Monthly time series data for inflation (CPI), industrial production (IP), an exchange rate (EX), interest (TB), short-term (CD) were used from 2010 2021. The ADF test, bound testing approach, CUSUM test CUSUMQ this study. Findings findings show a long-run stable stock price, political (i.e., CPI, IP, ER, TB, CD crisis). results of Johansen cointegration suggest that there is at least one cointegrating equation, indicating prices Research limitations/implications vector error correction estimates coefficient term significant with negative sign, dynamic exists prices. In short term, has had big effect on suggesting Lanka’s domestic financial markets are linked stability country. Originality/value research establishes links returns, crisis. So far, been unable establish empirical nature such links. authors believe paper fills gap.

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ژورنال

عنوان ژورنال: Journal of money and business

سال: 2022

ISSN: ['2634-260X', '2634-2596']

DOI: https://doi.org/10.1108/jmb-06-2022-0033