The relationship between the money market rates and the common stock returns: the Malaysian experience
The relationship between monetary developments and common stock returns has been the focus of a considerable amount of research in recent years. This paper addresses the relationship between the money market rates and the common stock returns in Malaysia. Statistical analyses were conducted to provi...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
1992
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| Online Access: | http://journalarticle.ukm.my/7945/ http://journalarticle.ukm.my/7945/1/1609-3037-1-SM.pdf |
| _version_ | 1848811643651227648 |
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| author | Noor Azlan Ghazali, |
| author_facet | Noor Azlan Ghazali, |
| author_sort | Noor Azlan Ghazali, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The relationship between monetary developments and common stock returns has been the focus of a considerable amount of research in recent years. This paper addresses the relationship between the money market rates and the common stock returns in Malaysia. Statistical analyses were conducted to provide empirical linkage between the two market; i.e., money market and capital market. The results indicated that no significant relationship exist between money market rates movement and common stock returns. However, the inverse relationship between the two variables was traced in the Malaysian market. Among all money market rates, the interbank rates offer some predictive power as it is commonly used as liquidity barometer in the Malaysian inancial market. This study also found evidence of disintermediation, i.e., outlow offud from the banking sector into direct capital market due to changing level of interest rate. |
| first_indexed | 2025-11-14T23:49:40Z |
| format | Article |
| id | oai:generic.eprints.org:7945 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T23:49:40Z |
| publishDate | 1992 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:79452016-12-14T06:45:43Z http://journalarticle.ukm.my/7945/ The relationship between the money market rates and the common stock returns: the Malaysian experience Noor Azlan Ghazali, The relationship between monetary developments and common stock returns has been the focus of a considerable amount of research in recent years. This paper addresses the relationship between the money market rates and the common stock returns in Malaysia. Statistical analyses were conducted to provide empirical linkage between the two market; i.e., money market and capital market. The results indicated that no significant relationship exist between money market rates movement and common stock returns. However, the inverse relationship between the two variables was traced in the Malaysian market. Among all money market rates, the interbank rates offer some predictive power as it is commonly used as liquidity barometer in the Malaysian inancial market. This study also found evidence of disintermediation, i.e., outlow offud from the banking sector into direct capital market due to changing level of interest rate. Penerbit Universiti Kebangsaan Malaysia 1992 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7945/1/1609-3037-1-SM.pdf Noor Azlan Ghazali, (1992) The relationship between the money market rates and the common stock returns: the Malaysian experience. Jurnal Pengurusan, 11 . pp. 3-13. ISSN 0127-2713 http://ejournals.ukm.my/pengurusan/issue/view/ |
| spellingShingle | Noor Azlan Ghazali, The relationship between the money market rates and the common stock returns: the Malaysian experience |
| title | The relationship between the money market rates and the common stock returns: the Malaysian experience |
| title_full | The relationship between the money market rates and the common stock returns: the Malaysian experience |
| title_fullStr | The relationship between the money market rates and the common stock returns: the Malaysian experience |
| title_full_unstemmed | The relationship between the money market rates and the common stock returns: the Malaysian experience |
| title_short | The relationship between the money market rates and the common stock returns: the Malaysian experience |
| title_sort | relationship between the money market rates and the common stock returns: the malaysian experience |
| url | http://journalarticle.ukm.my/7945/ http://journalarticle.ukm.my/7945/ http://journalarticle.ukm.my/7945/1/1609-3037-1-SM.pdf |