Bank Loans and Stock Prices: An Empirical Evidence

Dublin Core

Title

Bank Loans and Stock Prices: An Empirical Evidence

Description

Abstract - This study re-examines the interaction between bank loans and stock prices in Malaysia. We use Granger non-causality test proposed by Toda and Yamamoto (1995) in both bivariate and multivariate frameworks and both monthly and quarterly data in examining the relationship between the two variables. Unlike previous studies, we find that there is strong evidence of no causality running between stock prices and bank loans in all models and samples. This finding revealed that stock prices and bank loans are independent. The predictability of stock prices cannot be enhanced considerably through utilizing information on the bank loans.

Creator

Abdul Karim, Bakri
Siew Lih, Lim
Abdul Karim, Zulkefly

Source

Aceh International Journal of Social Science; Volume 1 Number 2, December 2012

Publisher

Aceh International Journal of Social Science

Date

2012-12-01

Relation

http://jurnal.unsyiah.ac.id/AIJSS/article/view/1526/1414

Format

application/pdf

Language

eng

Type

info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article

Identifier

http://jurnal.unsyiah.ac.id/AIJSS/article/view/1526
10.12345/aijss.1.2.1526