Determinants of stock market development in Romania
This study aims to evaluate the impacts of some central explanatory variables namely Foreign Direct Investment (FDI), infrastructure facility, saving, inflation, income and energy use on Romanian’s stock market development measured by market capitalization.For empirical examination, this study used...
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| Format: | Article |
| Sprog: | English |
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Spiru Haret University Faculty of Financial Management Accounting
2014
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| Online adgang: | https://repo.uum.edu.my/id/eprint/18901/1/JAES%209%204%202014%20561%20570.pdf |
| _version_ | 1825804106335256576 |
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| author | Azam, Muhammad Khan, Abdul Qayyum Stefanescu, L. |
| author_facet | Azam, Muhammad Khan, Abdul Qayyum Stefanescu, L. |
| author_sort | Azam, Muhammad |
| collection | UUM |
| description | This study aims to evaluate the impacts of some central explanatory variables namely Foreign Direct Investment (FDI), infrastructure facility, saving, inflation, income and energy use on Romanian’s stock market development measured by market capitalization.For empirical examination, this study used annual time series data over the period of 1990 to 2013.The study employs various diagnostic tests including normality test, Pearson correlation test, Park test and DW- test, which shows that there is no problem of skewness and kurtosis, no problem of heteroscedasticity and no problem of autocorrelation in the model of market capitalization used for Romania.The Johanson co-integration results indicates that there exists three co-integrating relationship among the variables.Further, least squares estimate indicates incoming FDI, infrastructure, saving, energy usage and income are important determinants of Romanian’s stock market in selected macroeconomic variables used in the study.The empirical findings suggests that management authorities of Romania needs to formulate prudent macroeconomic stabilization policy in order to encourage incoming FDI, facilitate physical infrastructure, encourage saving, maintain sustainable energy use.Thus, all these measures will further develop largely Romanian’s stock market. |
| first_indexed | 2024-07-04T06:08:56Z |
| format | Article |
| id | uum-18901 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:08:56Z |
| publishDate | 2014 |
| publisher | Spiru Haret University Faculty of Financial Management Accounting |
| record_format | eprints |
| spelling | uum-189012016-10-11T08:44:25Z https://repo.uum.edu.my/id/eprint/18901/ Determinants of stock market development in Romania Azam, Muhammad Khan, Abdul Qayyum Stefanescu, L. HC Economic History and Conditions This study aims to evaluate the impacts of some central explanatory variables namely Foreign Direct Investment (FDI), infrastructure facility, saving, inflation, income and energy use on Romanian’s stock market development measured by market capitalization.For empirical examination, this study used annual time series data over the period of 1990 to 2013.The study employs various diagnostic tests including normality test, Pearson correlation test, Park test and DW- test, which shows that there is no problem of skewness and kurtosis, no problem of heteroscedasticity and no problem of autocorrelation in the model of market capitalization used for Romania.The Johanson co-integration results indicates that there exists three co-integrating relationship among the variables.Further, least squares estimate indicates incoming FDI, infrastructure, saving, energy usage and income are important determinants of Romanian’s stock market in selected macroeconomic variables used in the study.The empirical findings suggests that management authorities of Romania needs to formulate prudent macroeconomic stabilization policy in order to encourage incoming FDI, facilitate physical infrastructure, encourage saving, maintain sustainable energy use.Thus, all these measures will further develop largely Romanian’s stock market. Spiru Haret University Faculty of Financial Management Accounting 2014-01 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/18901/1/JAES%209%204%202014%20561%20570.pdf Azam, Muhammad and Khan, Abdul Qayyum and Stefanescu, L. (2014) Determinants of stock market development in Romania. Journal of Applied Economic Sciences, 9 (4). pp. 561-571. ISSN 2393 - 5162 http://cesmaa.eu/journals/jaes/files/JAES_2014_Winter_short%20version.pdf |
| spellingShingle | HC Economic History and Conditions Azam, Muhammad Khan, Abdul Qayyum Stefanescu, L. Determinants of stock market development in Romania |
| title | Determinants of stock market development in Romania |
| title_full | Determinants of stock market development in Romania |
| title_fullStr | Determinants of stock market development in Romania |
| title_full_unstemmed | Determinants of stock market development in Romania |
| title_short | Determinants of stock market development in Romania |
| title_sort | determinants of stock market development in romania |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/18901/1/JAES%209%204%202014%20561%20570.pdf |
| work_keys_str_mv | AT azammuhammad determinantsofstockmarketdevelopmentinromania AT khanabdulqayyum determinantsofstockmarketdevelopmentinromania AT stefanescul determinantsofstockmarketdevelopmentinromania |