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:: Volume 14, Issue 1 (Winter 2019) ::
J. Mon. Ec. 2019, 14(1): 41-62 Back to browse issues page
Analysis of the Impact of Economic Growth and Asymmetric Information of Capital Market of Iran on Investors' Confidence: A Multivariate GARCH approach
SeyedAbdollah Moosavi1, Homayoun Ranjbar * 2, Majid Sameti, Hossein Sharifi Ranany2
1- Phd candidate, Department of Economics, Isfahan (khorasgan) Branch, Islamic Azad University, Isfahan
2- Associated professor, Department of Economics, Isfahan (khorasgan) Branch, Islamic Azad University, Isfahan
Abstract:   (190 Views)
The stock exchange, as part of the capital market, in case of necessary conditions, can equip national capital and direct it towards economic growth. A secure environment for investment and information asymmetry are considered to be the features of a good business, in which managers are working towards stockholders. This research seeks to investigate whether information asymmetry of financial market and macroeconomic growth can affect investors’ confidence ratio? Our model is estimated using MGARCH for seasonal data of the stock market in Iran and the real GDP during the period from 1991-2016. The findings of the research have shown a significant effect of macroeconomic growth and information asymmetry of financial market on the growth of investors’ confidence ratio. There is also a two-way gradient relationship between the information asymmetry and the confidence of investors in the short run. There is an cointegration relationship between these three variables.
 
Keywords: information asymmetry, Investors’ Confidence, Total Stock Price Index, Economic Growth, Multivariate GARCH
Full-Text [PDF 292 kb]   (122 Downloads)    
Type of Study: Research | Subject: Economics
Received: 2018/12/27 | Accepted: 2019/10/13 | Published: 2019/11/12
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Moosavi S, Ranjbar H, Sameti M, Sharifi Ranany H. Analysis of the Impact of Economic Growth and Asymmetric Information of Capital Market of Iran on Investors' Confidence: A Multivariate GARCH approach. J. Mon. Ec.. 2019; 14 (1) :41-62
URL: http://jme.mbri.ac.ir/article-1-360-en.html


Volume 14, Issue 1 (Winter 2019) Back to browse issues page
Journal of Money and Economy Journal of Money And Economy
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