Stock Market Reactions due to Announcements of Consumer Price Index and the Investigation of Endogeneity
AbstractIn the financial market the very peculiar and key focus is about the trading volume response to Consumer price index (CPI). Therefore, taking CPI as one of the important economic variables, the Karachi Stock Exchange-100 index trading volume was investigated in connection with the CPI. The outcomes of this study suggested that CPI has a major association with the KSE-100 index trading volume. The statistical test further elaborated this significance and has revealed a negative relationship between CPI “Consumer price index” and “KSE-100 index trading volume”. Another interesting key feature to this research was the presence of endogeneity in the data used for the research.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34725.
Date of creation: 2011
Date of revision:
Publication status: Published in Interdisciplinary Journal of Contemporary Research in Business 1.3(2011): pp. 878-884
Consumer price index (CPI) announcements; Trading Volume; Endogeneity;
Find related papers by JEL classification:
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-21 (All new papers)
- NEP-FMK-2011-11-21 (Financial Markets)
- NEP-MKT-2011-11-21 (Marketing)
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