Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia
Over the years, macroeconomic fundamentals and the stock market were found to have symmetrical relationship in numerous scientific investigations. These fundamentals provide crucial knowledge regarding stock price indices by providing forecasts for the future and information on the current status o...
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Centre of Sociological Research in co-operation with University of Szczecin (Poland), Academy of Economic Studies in Bucharest (Romania) and Széchenyi István University (Hungary).
2023
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Online Access: | http://ir.unimas.my/id/eprint/44799/1/Asymmetric.pdf http://ir.unimas.my/id/eprint/44799/ https://www.jois.eu/?812,en_asymmetric-effects-of-inflation-rate-changes-on-the-stock-market-index-the-case-of-indonesia |
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my.unimas.ir.447992024-05-20T02:57:36Z http://ir.unimas.my/id/eprint/44799/ Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia Sia, Peck Ching Leong, Choi Meng Puah, Chin Hong HG Finance Over the years, macroeconomic fundamentals and the stock market were found to have symmetrical relationship in numerous scientific investigations. These fundamentals provide crucial knowledge regarding stock price indices by providing forecasts for the future and information on the current status of the economy. This study employs a Nonlinear Autoregressive Distributed Lags (NARDL) model to fill in the research gap by estimating the asymmetric relationship between inflation and stock market from 1996 to 2020. The study suggests that inflation has a long-run and short-run asymmetric affect on the stock price, while both positive and negative inflation changes harm stock prices. As it reveals, the asymmetric impact of inflation on the stock market, this study can assist investors and businesses in making well-informed decisions that result in a more efficient allocation of resources, ultimately benefiting the economy. Additionally, policymakers can utilize these findings to design effective strategies for managing inflation, stabilizing prices, promoting economic growth, and ensuring financial market stability Centre of Sociological Research in co-operation with University of Szczecin (Poland), Academy of Economic Studies in Bucharest (Romania) and Széchenyi István University (Hungary). 2023 Article PeerReviewed text en http://ir.unimas.my/id/eprint/44799/1/Asymmetric.pdf Sia, Peck Ching and Leong, Choi Meng and Puah, Chin Hong (2023) Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia. Journal of International Studies, 16 (1). pp. 128-141. ISSN 2306-3483 https://www.jois.eu/?812,en_asymmetric-effects-of-inflation-rate-changes-on-the-stock-market-index-the-case-of-indonesia DOI: 10.14254/2071-8330.2023/16-1/9 |
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HG Finance Sia, Peck Ching Leong, Choi Meng Puah, Chin Hong Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia |
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Over the years, macroeconomic fundamentals and the stock market were found to have symmetrical relationship in numerous scientific investigations. These fundamentals provide crucial knowledge regarding stock price indices by
providing forecasts for the future and information on the current status of the economy. This study employs a Nonlinear Autoregressive Distributed Lags (NARDL) model to fill in the research gap by estimating the asymmetric
relationship between inflation and stock market from 1996 to 2020. The study suggests that inflation has a long-run and short-run asymmetric affect on the stock price, while both positive and negative inflation changes harm stock prices.
As it reveals, the asymmetric impact of inflation on the stock market, this study can assist investors and businesses in making well-informed decisions that result in a more efficient allocation of resources, ultimately benefiting the economy. Additionally, policymakers can utilize these findings to design effective strategies for managing inflation, stabilizing prices, promoting economic growth, and ensuring financial market stability |
format |
Article |
author |
Sia, Peck Ching Leong, Choi Meng Puah, Chin Hong |
author_facet |
Sia, Peck Ching Leong, Choi Meng Puah, Chin Hong |
author_sort |
Sia, Peck Ching |
title |
Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia |
title_short |
Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia |
title_full |
Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia |
title_fullStr |
Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia |
title_full_unstemmed |
Asymmetric effects of inflation rate changes on the stock market index : The case of Indonesia |
title_sort |
asymmetric effects of inflation rate changes on the stock market index : the case of indonesia |
publisher |
Centre of Sociological Research in co-operation with University of Szczecin (Poland), Academy of Economic Studies in Bucharest (Romania) and Széchenyi István University (Hungary). |
publishDate |
2023 |
url |
http://ir.unimas.my/id/eprint/44799/1/Asymmetric.pdf http://ir.unimas.my/id/eprint/44799/ https://www.jois.eu/?812,en_asymmetric-effects-of-inflation-rate-changes-on-the-stock-market-index-the-case-of-indonesia |
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