Exploring Novel Approach in Determining Stock Performance

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


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.