IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v20y2025i2p94.html
   My bibliography  Save this article

Impact of Interest Rate on Stock Market Returns: A Study of the Karachi Stock Exchange

Author

Listed:
  • Aamir Iqbal Ghazanvi
  • Muhammad Usman Akram

Abstract

This study investigates the impact of interest rates on stock market returns, focusing on the Karachi Stock Exchange (KSE) from 1997 to 2010. The analysis incorporates macroeconomic variables such as exchange rates, the industrial production index, and behavioural factors like investor sentiment. Descriptive statistics and correlation analysis provide foundational insights into the dataset, while unit root and stationarity tests ensure robust econometric modelling. The revised regression approach, utilizing differenced data, confirms a significant negative relationship between interest rates and stock market returns. The findings align with global trends but underscore the unique characteristics of emerging markets, offering valuable implications for policymakers and investors.

Suggested Citation

  • Aamir Iqbal Ghazanvi & Muhammad Usman Akram, 2025. "Impact of Interest Rate on Stock Market Returns: A Study of the Karachi Stock Exchange," International Journal of Business and Management, Canadian Center of Science and Education, vol. 20(2), pages 1-94, August.
    • Handle: RePEc:ibn:ijbmjn:v:20:y:2025:i:2:p:94
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijbm/article/download/0/0/51333/55759
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijbm/article/view/0/51333
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijbmjn:v:20:y:2025:i:2:p:94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.