Country-Level Governance Quality and Stock Market Performance of GCC Countries

• 발행기관: 한국유통과학회
• 저자명: Kennedy Prince MODUGU Juan DEMPERE
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.8, 185~195쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.08.30

영문 초록

This study examines the association between governance quality at country level and stock market performance. Specifically;the study investigates the influence of control of corruption;government effectiveness;political stability and absence of violence;rule of law;regulatory quality;and voice and accountability on all-share index of the stock markets of the six Gulf Cooperation Council (GCC) countries. This study is anchored on two theories – the Efficient Market Hypothesis (EMH) and Institutional Theory. The study employs panel data spanning from 2006 to 2017. The findings show that political stability and absence of violence and rule of law exhibit a significant positive impact on stock market performance;while regulatory quality and voice and accountability have a significant;but negative relationship with stock market performance. The results imply that quality of governance in terms of rule of law and political stability devoid of violence have strong impact on stock market returns. Similarly;improved stock market returns are largely dependent on the efficiency of the institutional environment of market as investors are always wary of the inherent risks associated with the uncertainty of the market. This study has crucial policy implications for the government of the GCC countries and stock market participants.

목차

1. Introduction

2. Literature Review

3. Theoretical Framework

4. Methodology

5. Results and Discussion

6. Conclusion and Policy Implications

References

키워드

Country-Level Governance Quality Stock Market Performance