Exploring Novel Approach in Determining Stock Performance

Umer Ilyas; Matti Ullah Butt; Muhammad Gulzar

doi:10.54692/ajss.2020.04031117

Umer Ilyas Department of Business Administration, National College of Business Administration & Economics, Punjab, Pakistan
Matti Ullah Butt Department of Business AdministrationNational College of Business Administration & Economic FLC, Lahore, Punjab, Pakistan
Muhammad Gulzar School of commerce & Accounting at University of Management & Technology, Lahore, Punjab, Pakistan

DOI: https://doi.org/10.54692/ajss.2020.04031117

Keywords: Developing Economies, Panel ARDL Model, Macro Economic Variables, Stock Market performance.

Abstract

This study explores the impact of exports, foreign direct investment, foreign exchange reserves, inflation and interest rate with the aid of Panel ARDL model with co-integration upon not only overall on all 35 sectors of Pakistan stock exchange but also on all firms of all sectors as well to overcome the deficiencies of conventional index base studies. To achieve this objective monthly data for the period of 2005-2020 were used and results indicates that current study has superiority over past studies as overall sector and firms from same sectors shows differing response to changes in value of macro-economic variables and this will lead to better decision making to all stake holders.