skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Central Bank Credibility’s Effect on Stock Exchange Returns’ Volatility: Evidence from OECD Countries

Economies, 2023-10, Vol.11 (10), p.257 [Peer Reviewed Journal]

COPYRIGHT 2023 MDPI AG ;2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 2227-7099 ;EISSN: 2227-7099 ;DOI: 10.3390/economies11100257

Full text available

Citations Cited by
  • Title:
    Central Bank Credibility’s Effect on Stock Exchange Returns’ Volatility: Evidence from OECD Countries
  • Author: Dokas, Ioannis ; Oikonomou, Georgios ; Papadamou, Stephanos ; Spyromitros, Eleftherios
  • Subjects: central bank credibility ; Central banks ; Credibility ; Evaluation ; financial data ; Interest rates ; stock exchange volatility ; Stock exchanges ; Stock markets ; Volatility (Finance)
  • Is Part Of: Economies, 2023-10, Vol.11 (10), p.257
  • Description: Central bank characteristics are important determinants of stock market returns and their volatility. While the literature has examined the effects of transparency and independence, no research has been conducted so far on the effect of central bank credibility on stock market returns’ volatility. A panel regression using financial and macroeconomic data from 45 OECD member countries over the period of 1998–2022 tested the hypothesis that central bank credibility determines stock exchange returns’ volatility. The results indicated that credibility reduces stock returns’ volatility, remaining robust and statistically significant across models. Economic growth also decreases stock market volatility, while money-market interest rates’ volatility, the stock market’s turnover ratio, and economic/financial crises act as amplifying factors of stock market volatility. All variables, except for economic growth, exhibit unidirectional causality, leading to changes in stock market volatility.
  • Publisher: Basel: MDPI AG
  • Language: English
  • Identifier: ISSN: 2227-7099
    EISSN: 2227-7099
    DOI: 10.3390/economies11100257
  • Source: Coronavirus Research Database
    ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait