The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence
This study examines the influence of financial development variables on the Composite Stock Price Index (CSPI) in Emerging Market Countries. This study uses secondary data obtained from the International Monetary Fund and Yahoo Finance, with an annual data period of 2000–2020. Panel data regression...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Vilnius University Press
2023-12-01
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| Series: | Organizations and Markets in Emerging Economies |
| Subjects: | |
| Online Access: | https://www.journals.vu.lt/omee/article/view/31957 |
| _version_ | 1797194367162646528 |
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| author | Ariodillah Hidayat Liliana Harunurrasyid Xenaneira Shodrokova |
| author_facet | Ariodillah Hidayat Liliana Harunurrasyid Xenaneira Shodrokova |
| author_sort | Ariodillah Hidayat |
| collection | DOAJ |
| description |
This study examines the influence of financial development variables on the Composite Stock Price Index (CSPI) in Emerging Market Countries. This study uses secondary data obtained from the International Monetary Fund and Yahoo Finance, with an annual data period of 2000–2020. Panel data regression analysis using the random effects model was performed to analyze data. The results showed that Financial Market Access Index (FMAI) and Financial Market Depth Index (FMDI) variables had a positive and significant relationship affecting CSPI, while Financial Market Efficiency Index (FMEI) had a negative and significant relationship to CSPI. The FMEI results negatively affecting CSPI indicate the need for improvements in financial market efficiency. Increased efficiency can help ensure that relevant and accurate information is available quickly and fairly to all parties, driving better investment decisions.
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| first_indexed | 2024-03-07T15:40:11Z |
| format | Article |
| id | doaj.art-f8e01b360c9a4b38880a6632c53b9256 |
| institution | Directory Open Access Journal |
| issn | 2029-4581 2345-0037 |
| language | English |
| last_indexed | 2024-04-24T05:55:09Z |
| publishDate | 2023-12-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Organizations and Markets in Emerging Economies |
| spelling | doaj.art-f8e01b360c9a4b38880a6632c53b92562024-04-23T09:05:48ZengVilnius University PressOrganizations and Markets in Emerging Economies2029-45812345-00372023-12-0114310.15388/omee.2023.14.8The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data EvidenceAriodillah Hidayat0https://orcid.org/0000-0002-6520-5985Liliana1Harunurrasyid2https://orcid.org/0009-0001-5919-5530Xenaneira Shodrokova3Sriwijaya University, IndonesiaSriwijaya University, IndonesiaSriwijaya University, IndonesiaSriwijaya University, Indonesia This study examines the influence of financial development variables on the Composite Stock Price Index (CSPI) in Emerging Market Countries. This study uses secondary data obtained from the International Monetary Fund and Yahoo Finance, with an annual data period of 2000–2020. Panel data regression analysis using the random effects model was performed to analyze data. The results showed that Financial Market Access Index (FMAI) and Financial Market Depth Index (FMDI) variables had a positive and significant relationship affecting CSPI, while Financial Market Efficiency Index (FMEI) had a negative and significant relationship to CSPI. The FMEI results negatively affecting CSPI indicate the need for improvements in financial market efficiency. Increased efficiency can help ensure that relevant and accurate information is available quickly and fairly to all parties, driving better investment decisions. https://www.journals.vu.lt/omee/article/view/31957Financial DevelopmentComposite Stock Price Indexemerging market |
| spellingShingle | Ariodillah Hidayat Liliana Harunurrasyid Xenaneira Shodrokova The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence Organizations and Markets in Emerging Economies Financial Development Composite Stock Price Index emerging market |
| title | The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence |
| title_full | The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence |
| title_fullStr | The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence |
| title_full_unstemmed | The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence |
| title_short | The Relationship Between Financial Development and the Composite Stock Price Index in Emerging Market Countries: A Panel Data Evidence |
| title_sort | relationship between financial development and the composite stock price index in emerging market countries a panel data evidence |
| topic | Financial Development Composite Stock Price Index emerging market |
| url | https://www.journals.vu.lt/omee/article/view/31957 |
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