Abstract
The key determination of the present research is to examine the impact of selected major variables on stock return of the Pakistani emerging capital market Karachi Stock Exchange. The researches display that capital market is inclined by transform in major economic variables. This study observes impact of three major economic variables i.e. foreign direct investment, foreign exchange rate and inflation at Karachi stock exchange. The monthly data of ten years practice in this study. To reach the objectives, study uses the Ordinary Least Square (OLS) to estimate the correlation and regression model. The Durbin-Watson statistics 1.90 value indication that there are no serial correlations issues in study. And results show that significant negative impact of inflation and Foreign exchange rate and foreign direct investment negative insignificant impact on KSE dependent variable. And overall model good fit by probability of F-statistics which less than 5%.
Highlights
In capital markets,the stock price determent by micro factors in short & long run e.g.financial & liquidity position of firm, profit or loss declare and dividend announcement etc
Objectives of the study: The specific purpose of this research is following objectives: i) To look at the macro-economic factors. ii) To find are there any correlation exist between stock return and major-economic factors. iii) To study the significant impact of macro-economic factors on stock return
In short-term and long run the securities are traded of listed companies in capital market and as well affected by micro and major economic factors
Summary
In capital markets,the stock price determent by micro factors in short & long run e.g.financial & liquidity position of firm, profit or loss declare and dividend announcement etc. There are one of the most important role of capital market is to act upon as moderator along with investor and borrowers opportunities for investment. In short-term and long run the securities are traded of listed companies in capital market and as well affected by micro and major economic factors. These factor representations study the sensitivity of an equity &debenture return as a role of one or more factors. The capital market and a mixture of variables are directly related with each one other
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
