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The link between institutional quality, ethical behaviors of firms, and market regulations on stock market developments

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  • Cemil Kuzey
  • Ali Uyar
  • Amal Hamrouni
  • Merve Kilic
  • Rim Boussaada

Abstract

This study explores the link between institutional quality, ethical behaviors of firms, and market regulations on stock market developments. The dynamic panel regression analysis and moderation analysis with single‐threshold modeling approaches were exploited to test the hypotheses. The results show that overall institutional quality with its six indicators are significant predictors of stock market development taking into account that they have varying influence on different stock market development proxy. Moreover, moderation analysis showed that the ethical behavior of firms and market regulations mostly acts as a substitute and sometimes acts as a complement for institutional quality in stock market development.

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  • Cemil Kuzey & Ali Uyar & Amal Hamrouni & Merve Kilic & Rim Boussaada, 2021. "The link between institutional quality, ethical behaviors of firms, and market regulations on stock market developments," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 998-1021, June.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:4:p:998-1021
    DOI: 10.1002/mde.3288
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