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EXAMINING THE IMPACT OF MARKET COMPETITION ON THE RELATIONSHIP BETWEEN GOVERNANCE INDICATORS AND STOCK MARKET PERFORMANCE

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http://dx.doi.org/10.31703/ger.2022(VII-II).20      10.31703/ger.2022(VII-II).20      Published : Jun 2022

Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance

Abstract

    This paper's objective is to investigate how market competition moderates the association between governance indicators and stock market performance. Data from 110 countries have been taken as a sample for the period spanning from 2007 to 2016. For this purpose data is divided into three subpanels high earnings group, middle earnings group and low earnings group. Ordinary Least Square (OLS), Random Effect Model, Fixed Effect Model and Prais-Winsten regression estimation are used to analyze the data. Moreover, we find a positive effect of market competition along with government effectiveness and regulatory quality on Stock Market Performance. Nevertheless, the conjunction of market competition and political stability exerts a detrimental influence on stock market performance. This study provides some guidelines to policymakers, investors and researchers.

    Stock Market Performance, Market Competition, Governance Indicators, GDP, Market size

    (1) Fahad Hussain
    Ph.D. Scholar, Department of Business Administration, Ghazi University, Dera Ghazi Khan, Punjab, Pakistan.
    (2) Muhammad Ziaullah
    Associate Professor, Department of Business Administration, Ghazi University, Dera Ghazi Khan, Punjab, Pakistan.
    (3) Asghar Hayyat
    Ph.D. Scholar, Department of Business Administration, Ghazi University, Dera Ghazi Khan, Punjab, Pakistan.
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Cite this article

APA

    APA : Hussain, F., Ziaullah, M., & Hayyat, A. (2022). Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance. Global Economics Review, VII(II), 226-245. https://doi.org/10.31703/ger.2022(VII-II).20

CHICAGO

    CHICAGO : Hussain, Fahad, Muhammad Ziaullah, and Asghar Hayyat. 2022. "Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance." Global Economics Review, VII (II): 226-245 doi: 10.31703/ger.2022(VII-II).20

HARVARD

    HARVARD : HUSSAIN, F., ZIAULLAH, M. & HAYYAT, A. 2022. Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance. Global Economics Review, VII, 226-245.

MHRA

    MHRA : Hussain, Fahad, Muhammad Ziaullah, and Asghar Hayyat. 2022. "Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance." Global Economics Review, VII: 226-245

MLA

    MLA : Hussain, Fahad, Muhammad Ziaullah, and Asghar Hayyat. "Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance." Global Economics Review, VII.II (2022): 226-245 Print.

OXFORD

    OXFORD : Hussain, Fahad, Ziaullah, Muhammad, and Hayyat, Asghar (2022), "Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance", Global Economics Review, VII (II), 226-245

TURABIAN

    TURABIAN : Hussain, Fahad, Muhammad Ziaullah, and Asghar Hayyat. "Examining the Impact of Market Competition on the Relationship between Governance Indicators and Stock Market Performance." Global Economics Review VII, no. II (2022): 226-245. https://doi.org/10.31703/ger.2022(VII-II).20