Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period

There has been a revival of interest in examining the link between stock market-growth and finance-growth hypotheses. However, the existing studies do not gauge the performance of bank functioning directly on the economic performance. The study, therefore, reviews and extends the empirical analysis...

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Main Authors: Lee, Kian Tek *, Chong, C. K.
Format: Article
Language:English
Published: Serials Publicationa, New Delhi 2010
Subjects:
Online Access:http://eprints.sunway.edu.my/1650/
http://eprints.sunway.edu.my/1650/1/Lee%20Kian%20Tek%20Bank%20Stock%20Returns.pdf
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author Lee, Kian Tek *
Chong, C. K.
author_facet Lee, Kian Tek *
Chong, C. K.
author_sort Lee, Kian Tek *
building SU Institutional Repository
collection Online Access
description There has been a revival of interest in examining the link between stock market-growth and finance-growth hypotheses. However, the existing studies do not gauge the performance of bank functioning directly on the economic performance. The study, therefore, reviews and extends the empirical analysis between bank stock returns and long-run economic growth in Malaysia. Applying autoregressive distributed lag (ARDL) model, the results suggest a strong positive and significant relationship not only between stock market excess return and economic growth, but also between bank excess return and economic growth. The study also shows that this relationship is further enhanced by the development of domestic financial system.
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spelling sunway-16502021-11-18T01:23:54Z http://eprints.sunway.edu.my/1650/ Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period Lee, Kian Tek * Chong, C. K. HG Finance There has been a revival of interest in examining the link between stock market-growth and finance-growth hypotheses. However, the existing studies do not gauge the performance of bank functioning directly on the economic performance. The study, therefore, reviews and extends the empirical analysis between bank stock returns and long-run economic growth in Malaysia. Applying autoregressive distributed lag (ARDL) model, the results suggest a strong positive and significant relationship not only between stock market excess return and economic growth, but also between bank excess return and economic growth. The study also shows that this relationship is further enhanced by the development of domestic financial system. Serials Publicationa, New Delhi 2010 Article NonPeerReviewed text en cc_by_nc_4 http://eprints.sunway.edu.my/1650/1/Lee%20Kian%20Tek%20Bank%20Stock%20Returns.pdf Lee, Kian Tek * and Chong, C. K. (2010) Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period. Global review of business and economic research, 6 (1). pp. 13-22. ISSN 0973-127X
spellingShingle HG Finance
Lee, Kian Tek *
Chong, C. K.
Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period
title Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period
title_full Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period
title_fullStr Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period
title_full_unstemmed Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period
title_short Bank Stock Returns and Economic Growth in Malaysia: An Empirical Analysis of Post-Consolidation Period
title_sort bank stock returns and economic growth in malaysia: an empirical analysis of post-consolidation period
topic HG Finance
url http://eprints.sunway.edu.my/1650/
http://eprints.sunway.edu.my/1650/1/Lee%20Kian%20Tek%20Bank%20Stock%20Returns.pdf