The relationship between stock market and economic growth in Malaysia / Imelda Sabinas

• Main Author: Sabinas, Imelda
• Format: Thesis
• Language: English
• Published: 2016
• Subjects: Stock exchanges. Insider trading in securities
• Online Access: https://ir.uitm.edu.my/id/eprint/95522/1/95522.pdf; https://ir.uitm.edu.my/id/eprint/95522/

This study aims to investigate the relationship between stock market and economic growth in Malaysia using a 24-year time series data from 1989 until 2012. The method of this study analysis used is Granger Casuahty Test and Johansen Cointegration Test. The study analyzes the relationship between stock market and economic growth. The stock market used stock market capitalization ratio as a proxy for market size while value traded ratio and turnover ratio were used as proxy for market liquidity. The results show that stock market capitalization ratio and stock turnover ratios have a very weak correlation with economic growth. Meanwhile, stock market has a strong positive correlation with value traded ratio.