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Please use this identifier to cite or link to this item: https://ptsldigital.ukm.my/jspui/handle/123456789/578590
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dc.contributor.authorTin-fah Chung
dc.contributor.authorM. Ariff
dc.contributor.authorShamsher M
dc.date.accessioned2023-11-06T03:04:06Z-
dc.date.available2023-11-06T03:04:06Z-
dc.date.issued2017-03
dc.identifier.issn0128-7702
dc.identifier.otherukmvital:84494
dc.identifier.urihttps://ptsldigital.ukm.my/jspui/handle/123456789/578590-
dc.descriptionThis paper reports evidence of a banking liquidity impact on stock prices in the three Asean countries. Banking liquidity impacts suggested by Friedman is yet to be fully investigated nor verified despite several attempts. If improved liquidity of banks leads to credit expansion, which in turn leads to more positive net present value projects undertaken by firms, earnings of the latter must go up, and hence the share prices should rise. This link is worth an investigation. According to an influential of the US stock market, up to 52% of share returns are due to changes in the macro economy. Using a 3-equation structural model as well as employing corrections for cross-section dependence, we examine the link between money supply, liquidity and stock prices over 2001:4Q and 2012:2Q in three developing countries. It is found money supply changes lead to a positive liquidity effect and banking liquidity impacts share market prices positively. These findings are new and in support of Friedman’s liquidity proposition, and also constitute evidence of a banking liquidity having a positive effect on asset prices.
dc.language.isoen
dc.publisherUniversiti Putra Malaysia Press
dc.relation.haspartPertanika Journal of Social Sciences & Humanities
dc.relation.urihttp://www.pertanika.upm.edu.my/regular_issues.php?jtype=3&journal=JSSH-25-1-3
dc.rightsUniversiti Putra Malaysia
dc.subjectASEAN countries
dc.subjectLiquidity
dc.subjectbubble
dc.subjectPooled mean group
dc.subjectDynamic Fixed Effects
dc.subjectCointegration
dc.subjectStructural break
dc.subjectPanel Unit Roots
dc.titleBanking liquidity and stock market prices in three countries in Asean
dc.typeJournal Article
dc.format.volume25
dc.format.pages291-316-
dc.format.issue1
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