scholarly journals MONETARY POLICY APPLICATION AND STOCK MARKET REACTION DURING COVID-19 PANDEMIC: EVIDENCE FROM TURKEY

2021 ◽  
Author(s):  
Özkan HAYKIR ◽  
Özlem ÖZTÜRK ÇETENAK
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Market Reaction ◽  
Stock Market Reaction ◽  
Policy Application

Stock Market Reaction to Monetary Policy: An Event Study Analysis of the Brazilian Case

2018 ◽  
Vol 54 (11) ◽  
pp. 2577-2595 ◽  
Author(s):  
Flávio de Freitas Val ◽  
Marcelo Cabus Klotzle ◽  
Antonio Carlos Figueiredo Pinto ◽  
Claudio Henrique da Silveira Barbedo
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Event Study ◽  
Market Reaction ◽  
Study Analysis ◽  
Stock Market Reaction ◽  
Brazilian Case

scholarly journals Stock Market Reaction to Monetary Policy Modifications: Evidence from an Emergent Market

2021 ◽  
Vol 10 (3) ◽  
pp. 59
Author(s):  
Cordelia Onyinyechi Omodero ◽  
Dorcas Titilayo Adetula ◽  
Kingsley Adeyemo
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Money Supply ◽  
Market Reaction ◽  
Emerging Market ◽  
Harmful Effect ◽  
Stock Market Reaction ◽  
Stock Market Performance

This study evaluates the stock market reaction to monetary policy modifications in an emerging market using Nigeria as a case study.  Due to the crucial role the stock market plays in the global economy and finance, it becomes an attraction for most researchers and policymakers who try to find a basis for its smooth operation.  This study uses data that cover a period from 1998 to 2018 to establish what the position is in recent times empirically. The data are collected on all share index, money supply, interest rate and exchange rate. The multiple regression results provide evidence that the money supply has a significant favourable influence on the all-share index. In contrast, the interest rate has an immaterial harmful effect on the stock market output.  However, the result indicates that the exchange rate affects the stock market performance negatively, but the effect is insignificant. Based on these findings, the study suggests pilot test running of all monetary policy amendments by the monetary authority in the country before full implementation.  The government should encourage the CBN to cut down on interest rate and avoid all policies that will lead to a crash in the Nigerian stock market.   Received: 16 October 2020 / Accepted: 12 February 2021 / Published: 10 May 2021

scholarly journals Monetary policy and stock market reaction: developed market and emerging market comparison

2021 ◽  
Vol 13 (2) ◽  
pp. 135
Author(s):  
Buddi Wibowo
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Stock Market ◽  
Interest Rates ◽  
Financial Management ◽  
Market Reaction ◽  
Emerging Market ◽  
Common Factors ◽  
Short Term ◽  
Stock Market Reaction

This research examines the correlation between monetary policy and stock market reaction. Monetary policy is represented by short term interest rate and exchange rate to USD. This quantitative research uses OLS Regression, SUR, and Panel Regression Method. The results suggest that monetary policy affects the movement of the stock market return. Using OLS and SUR, this study finds that short-term interest rates have a significant negative correlation to return, and exchange rates positively correlate with returning. Using the Panel Data Model, this study finds that short-term interest rates have significant correlations in G7 and emerging countries. Still, the exchange rate is only significant in the emerging market. With SUR, there are common factors that affect the global return to move together. Domestic monetary policy is not an effective tool to influence the stock market because there are common factors in a region. From a financial management perspective, this result gives a practical reason for an investor to create an optimal portfolio through regional stock market diversification. Considering monetary policy in a country as a crucial factor in rebalancing the portfolio, standard regional monetary policy becomes an appropriate strategy.

The effect of slack, diversification, and time to recall on stock market reaction to toy recalls

2017 ◽  
Vol 193 ◽  
pp. 244-258 ◽  
Author(s):  
Lincoln C. Wood ◽  
Jason X. Wang ◽  
Karin Olesen ◽  
Torsten Reiners
Keyword(s):  
Stock Market ◽  
Market Reaction ◽  
Stock Market Reaction
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