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Abstract This research investigates how the USA's load capacity factor (LCF) has been impacted by trade openness, financial development, stock market capitalization, and industrialization over the period 1990–2022. This study also tests the “Load Capacity Curve (LCC)” hypothesis. Various unit root tests were conducted to determine the stationarity of the dataset, revealing that the variables are free from unit root problems and exhibit mixed orders of integration. The “Autoregressive Distributed Lag (ARDL)” bounds test confirmed co-integration among the variables. The results from the ARDL model validated the existence of the LCC hypothesis in the USA. The findings also demonstrated that industrialization is positively correlated with LCF, whereas financial development, stock market capitalization, and trade openness are negatively correlated with LCF. To ensure the robustness of the ARDL estimations, the study also employed several regressions, all of which confirmed the validity of the ARDL results. Additionally, pairwise Granger causality tests revealed unidirectional causal relationships between GDP and LCF, stock market capitalization and LCF, and industrialization and LCF, while no causal relationships were found between financial development and LCF and trade openness and LCF. The findings advocate that the USA should advance eco-friendly industrial practices to ensure environmental sustainability, alongside regulated financial markets and institutions that mandate the utilization of green investments.

This research investigates how the USA's load capacity factor (LCF) has been impacted by trade openness, financial development, stock market capitalization, and industrialization over the period 1990–2022. This study also tests the "Load Capacity Curve (LCC)" hypothesis. Various unit root tests were conducted to determine the stationarity of the dataset, revealing that the variables are free from unit root problems and exhibit mixed orders of integration. The "Autoregressive Distributed Lag (ARDL)" bounds test confirmed co-integration among the variables. The results from the ARDL model validated the existence of the LCC hypothesis in the USA. The findings also demonstrated that industrialization is positively correlated with LCF, whereas financial development, stock market capitalization, and trade openness are negatively correlated with LCF. To ensure the robustness of the ARDL estimations, the study also employed several regressions, all of which confirmed the validity of the ARDL results. Additionally, pairwise Granger causality tests revealed unidirectional causal relationships between GDP and LCF, stock market capitalization and LCF, and industrialization and LCF, while no causal relationships were found between financial development and LCF and trade openness and LCF. The findings advocate that the USA should advance eco-friendly industrial practices to ensure environmental sustainability, alongside regulated financial markets and institutions that mandate the utilization of green investments. [ABSTRACT FROM AUTHOR]

Copyright of Brazilian Journal of Law & International Relations / Relações Internacionais no Mundo is the property of Relacoes Internacionais no Mundo and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The progress of financial markets depends on the way world investors foresee the market potential of the country of choice. Countries that are associated with favorable economic incentives are able to motivate investments in their respective stock markets. The objective of this paper is to examine the role of the many economic components which constitute the Market Potential Index in enhancing stock market progress. The methodology goes through testing and estimation. The tests include linearity versus nonlinearity (RESET), normality, and cointegration. The estimation includes cointegration regression and discriminant analysis to distinguish between high and low stock market progress. This study examines unbalanced panel data that covers the years 1996–2022 for 54 countries where a stock market exists. The results show the following: (a) increases in people's expenditure result in decreases in consumption of investment in financial securities; (b) the investments in infrastructure technology is positively associated with stock market progress; (c) the positive effect of economic freedom indicates that further adaptive trading regulations are beneficial to stock market progress; (d) increases in imports consume large proportions of people's income, coming at the expense of investment in financial securities; (e) stock markets that are associated with high country risk are characterized by a positive risk–return tradeoff, i.e., a high risk premium; (f) the stock markets listed in the MPI can reach high progress by improving three indicators, namely commercial infrastructure, market receptivity, and country risk. This paper offers a thorough and unique examination of the institutional arrangements and stock market progress. The paper offers a guide to policy makers about how economic institutional arrangements can be promoted in order to reach high stock market progress. [ABSTRACT FROM AUTHOR]

The Indonesian stock market is a growing financial industry that plays a strategic role in the growth of the country’s economy. Its development is affected by various factors. This study examined the impact of the exchange rate, gross domestic product (GDP), interest rates, inflation, foreign portfolio investment (FPI), and domestic political stability on stock market capitalization. Quarterly data between 2000:Q1 and 2020:Q4 are used. The autoregressive distributed lag (ARDL) method is applied to identify long-run relationships between variables. To understand how fast the system reaches equilibrium after a shock, the model also examines short-run relationships using an error correction model (ECM). The findings show that the impact of exchange rate, interest rate, and inflation on stock market capitalization is negative in the long run. While the GDP, FPI, and political stability are positive. Increment in the US Dollar against the Indonesian Rupiah, interest rate, and inflation by 1% respectively, caused stock market capitalization to fall by 1.31%, 0.06%, and 0.04%. A rise in GDP, FPI, and political stability by 1% respectively, increases the stock market’s value by 1.17%, 1.08%, and 1.28%. In the short run, the coefficient of ECM indicates the speed of adjustment of the system: the occurrence of the shock to reach long-run equilibrium is quick enough, at 63.8% each quarter. The study recommends governments evaluate the impact of these factors when formulating monetary policies, promote economic growth, and continuously implement good governance, thus supporting stock market development.

This paper deals with the topic of the impact brought by the factors that contribute to the determination of financial balance indicators on the profitability of Romanian companies listed on the Bucharest Stock Exchange during several consecutive financial years. The subject under research was the subject of several studies that make up the specialized literature. The purpose of the research is to analyse the existence and intensity of the link between the financial balance indicators, determined semi-annually, and the economic performance of the companies, expressed through the profitability indicators. The research method used in the elaboration of the present study is that of multiple regression analysis of the data, applied using the SPSS statistical program.

This paper studies the role of capitalization on firms' stock price growth in response to new cases of Covid-19 infections in the United States. Controlling for firm and time fixed effects, our panel model estimates show that the effect of new cases of Covid-19 infections on firms' stock price growth is significantly increasing in capitalization: For each one standard deviation increase in capitalization, a one standard deviation increase in new cases of Covid-19 infections increases the weekly growth rate of firms' stock prices by about 0.7% points. Effects of capitalization on the impact that Covid-19 infections have on firms' stock price growth are largest in the travel, tourism, and hospitality sector. Smaller but still positive effects of capitalization are present in the pharmaceutical products, high-tech, and banking and finance sectors. The results are robust to controlling firms' elasticity of demand, productivity, financial constraints, managerial compensations, and aggregate money growth and economic activity. [ABSTRACT FROM AUTHOR]

Inequality in income distribution has increased in recent decades while households have seen their relationship with the financial sector deepen, raising the question of whether there is a causal relationship between the two phenomena. This paper studies how changes in house prices, private credit, and stock market capitalization affect income inequality. Dynamic panel data methods are used on an unbalanced panel of 57 advanced and emerging economies between 1998 and 2018. The results point to a positive impact of an increase in these variables on both the Gini coefficient of disposable income and the share of top incomes. Overall, the evidence indicates that the development of the financial sector and its consequent extension to households has been a driver of income inequality. The results are robust to different measures of house prices, different econometric specifications, and control variables. [ABSTRACT FROM AUTHOR]

Copyright of Polish Journal of Management Studies is the property of Czestochowa University of Technology, Faculty of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

It is well acknowledged that achieving sustainable development goals without negatively impacting a country's economic activity is complicated. The question of whether foreign or domestic capital can be used to address the financial demands of the nations who lack the financial resources for a green transformation should now be resolved. Based on this, the main goal of this research is to analyze the impacts of domestic and foreign capital on carbon emissions for a heterogeneous panel of 42 countries for the period from 1990 to 2017. Aside from capital accumulation, the environmental impact of elements such as economic growth, urbanization, trade openness, and energy usage is also studied. The newly developed quantile via moment approach is utilized to isolate the impacts according to the countries' emission levels. Finally, the impact of these variables on the recently constructed sustainable development index is investigated in order to ensure its robustness. The findings of the study reveal that the environmental efficiency of domestic capital accumulation in countries with low emission levels is higher than in countries with high emission levels. Foreign capital, on the other hand, has no substantial effect on emission levels in all quantiles. [ABSTRACT FROM AUTHOR]

The progress of financial markets depends on the way world investors foresee the market potential of the country of choice. Countries that are associated with favorable economic incentives are able to motivate investments in their respective stock markets. The objective of this paper is to examine the role of the many economic components which constitute the Market Potential Index in enhancing stock market progress. The methodology goes through testing and estimation. The tests include linearity versus nonlinearity (RESET), normality, and cointegration. The estimation includes cointegration regression and discriminant analysis to distinguish between high and low stock market progress. This study examines unbalanced panel data that covers the years 1996–2022 for 54 countries where a stock market exists. The results show the following: (a) increases in people’s expenditure result in decreases in consumption of investment in financial securities; (b) the investments in infrastructure technology is positively associated with stock market progress; (c) the positive effect of economic freedom indicates that further adaptive trading regulations are beneficial to stock market progress; (d) increases in imports consume large proportions of people’s income, coming at the expense of investment in financial securities; (e) stock markets that are associated with high country risk are characterized by a positive risk–return tradeoff, i.e., a high risk premium; (f) the stock markets listed in the MPI can reach high progress by improving three indicators, namely commercial infrastructure, market receptivity, and country risk. This paper offers a thorough and unique examination of the institutional arrangements and stock market progress. The paper offers a guide to policy makers about how economic institutional arrangements can be promoted in order to reach high stock market progress.

The subject of this paper is an analysis of the correlation between the financial market's development level and the level of economic growth. The paper also quantitatively tests a model that describes the impact of the financial market on economic growth. More specifically, it aims to provide the creators of the economic policies and financial markets regulators with a better understanding of the financial market's role in explaining the variance in the gross domestic product. The paper analyzes the correlation between financial market development level and market capitalization per listed company in 56 countries from 2016 to 2020, using two linear regression models and two panel regressions. The results of the analysis suggest that there is a strong positive correlation between the analyzed variables. These findings indicate that the stock market capitalization can reliably estimate the gross domestic product. Thus, the key implication of the paper is for the policymakers who should strive to stimulate the stock market development. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to make a financial analysis of the Romanian agricultural companies that initiated the listing process at the Bucharest Stock Exchange. The analysis is based on the financial data of the listed companies, covering the period 2020-2022, years subject to the shocks of the pandemic crisis caused by COVID-19. At the same time, an analysis was carried out on the stock market where companies with an agricultural profile are increasingly present. In this paper, a qualitative analysis of the decisions of the companies that initiated this procedure and the impact of these decisions was carried out. Based on our findings, we identify several recipes for success that may be useful to decision makers in the context of other financing or investment decisions. [ABSTRACT FROM AUTHOR]

As a part of their strategic transactions, corporations often acquire stakes in other companies that do not grant them control, but allow them to use their resources to increase their profitability, access technological progress and innovation, develop products, or obtain dividends. The main objective of this paper is to identify the factors influencing the behavior of acquirers who buy securities in the capital of the target companies, listed on Bucharest Stock Exchange, without intending to control them. The study aims to describe two dimensions of the buyers' behavior, when they buy shares that do not lead to the control of the target companies (below 50%). The first dimension refers to the buyer's decision to invest in a certain share of capital, influenced by the profitability of the target company and its market capitalization (dimensions of their performance), but also by the audit opinion on the annual financial statements. The relationship is positive and significant. The second dimension focuses on the decision of the acquirers to invest or not in a blue-chip company (top companies, considered the most efficient and stable on the financial market), with the main purpose of obtaining dividends or trading the respective securities on the capital market, in order to generate cash flows. The result shows that investors buy small shares in blue chip companies, compared to other companies, taking into account their performance and the audit opinion on the annual financial statements.

The stock markets of most CEE countries have been actively developing and improving over the past decades but they still do not belong to the developed markets according to MSCI classification, the financial systems of these countries tends towards the bank-oriented type. Does the level of stock market development affect economic growth in CEE countries and do these countries need to develop their stock markets accordingly? The purpose of this article is to identify the direction of the causal link between stock market development, banking sector development and economic growth in Central and Eastern European (CEE) countries. The subject of the research is the relationship between the stock market development, banking sector development and economic growth in the CEE countries. Methodology. The research is based on the annual data for two time periods 1999-2012 and 1999-2015 for the 8 and 5 CEE countries, respectively. The study is based on the Granger causality test and linear regression models. According to results of the research the stock market development plays an important role in attracting foreign direct investment and economic growth in CEE countries in the long-run period. There are revealed the channels of indirect influence of the stock market capitalization on the economic growth. Stock market capitalization has impact on the banking sector and gross capital formation, which in turn have impact on the economic growth of CEE countries. There is the impact of both the stock market and the banking sector development on the economic growth in CEE countries during 1999-2015. However, the impact of the stock market size on the economic growth is positive and the impact of domestic credit to private sector is negative. Practical implications. The study proves the reasonable need for the CEE countries to move towards further development of the stock market, improving the market infrastructure and institutional environment in order to expand the size of the stock market and thereby contribute to the economic growth of this countries. Value/originality. The obtained conclusion about the role of the stock market in economic growth and attraction of FDI is of great importance both for Ukraine and other countries with similar trajectory of economic development in general and similar historical aspects of the origin of stock markets in particular and should be taken into account by state leaders when making decisions on the need to create conditions for development of such element of the country’s financial system as the stock market.

This study explores relationships between annual advertising expenditure and major macroeconomic variables in Nigeria. Advertising is sometimes viewed as a concern of business units only not worth being researched at macroeconomic level. This nature has been mostly studied on advertising industries in the advanced economies. Due to a lack of high frequency time series data on advertising expenditure in the developing economies, this work has been limited to an exploratory study using the multiple regression and correlation analysis. The study covers the period of 2001 to 2018. Its findings show that advertising has positive relationship with GDP and savings. This study provides further evidence on the cyclical nature of advertising that moves with the state of the economy. During the economic slowdown in the period of 2015 to 2017, Nigeria advertising expenditure continued to fall. In 2013, the period with the highest advertising revenue in the study, the ratio of advertising expenditure as percentage of GDP accounted for 0.061%, which was below 0.2%, a very negligible number indicating more scope for growth in the market.

This paper aims to examine stock market with a capacity building perspective for economic growth, focusing on the factors that enhance stock market capitalization in the long term. This study evaluates cross country series data of 26 emerging countries listed at MSCI index, through a period of 2006 to 2019. The data were collected through World Bank, Pakistan Stock Exchange and SECP database. Vector Error correction model and Multiple Regression analysis were applied on data to analyze the impact of assorted factors on stock market capitalization to GDP as a measure of long term capacity. The findings suggest that political stability and corporate tax rate are two important factors that may have significant impact on stock market capitalization to GDP. This research is different from all past researches with respect to methodological, aeon and acclimatization perspective. Capacity building is a relatively new phenomenon adopted from complex adaptive ecosystems and most studies in this area are of theoretical nature. Moreover, the fact that this research has considered not only the long term but also short-term market capitalization perspective, adds to its overall value and originality.

The 1990s became a period of long-term recovery, the main driving force of which was the high-tech companies of the so-called «new economy», mainly associated with information technology and Internet at the global stock market. Such innovations have led to unrealistic expectations of the profitability of new companies from the sale of goods and services on the Internet. This became a prerequisite for a speculative boom in equity markets in developed financial systems. The boom intensified the mass privatization of state-owned enterprises in UK, Germany, France and some other countries. The capitalization of the global stock market increased more than ten times although the world GDP grew only 2.5 times during two decades, from 1980 to 2000. Though the stock market is the source of capital only in the countries with the Anglo-American model of financial markets (for countries of continental Europe and Japan such sources are bank loans), stock markets increased in all countries with developed financial systems. The systematic analysis of such key indicators as market capitalization and liquidity is required for an objective assessment of such rise in stock markets. But statistical information at stock markets is often not systematized and fragmentary. Therefore, the author (based on the official statistics of such international financial organizations as the Organization for Economic Co-operation and Development and the World Federation of Exchanges) has calculated and systematically analyzed capitalization and liquidity as the main indicators of the stock market for the largest countries with developed financial systems (USA, Great Britain, Germany, France, Japan). The paper displays the differences in the mechanisms of attraction of capital determined by the different models of financial markets (decentralized Anglo-American and centralized European) as well as the features of the composition of the main investors in the world stock markets.

In the classical form, the stock exchange is an organized by professional participants, constantly operating wholesaler of the best securities, with special trading principles, admission procedures to securities trading and brokers. Historically, stock exchanges have become, in a sense, the peculiar locomotives of the securities market, and their role in the development of economic relations is quite significant. Today, there are more than 200 stock exchanges with different levels of capitalization around the world. The activities of such financial institutions have an impact on the intensity of economic processes throughout the market. In particular, the stock exchange provides optimal conditions for the circulation of securities and acts as a reg ulator of prices for them. Despite the large number of financial regulators operating in all countries of the world, only some of them have saved and increased the capacity of their economic potential. The level of their capitalization exceeds 1 trillion and equals 87% of the global market. This article proposes consideration of the methodology for analyzing the existence of a dependence between the direction of the exchange and the economy. The features and problems, historical aspects of development of world stock exchanges have been determined. The comparative analysis of ten largest world stock exchanges, the rating of which is based on stock indices and data of the total turnover of trades, has been conducted. The dynamics of stock indexes of the investigated exchanges for 2015-2018 has been considered.

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Food Industry Economics / Ekonomìka Harčovoï Promislovostì is the property of Odesa National University of Technology and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

One of the important determinants of economic development is the existence of an effective financial system. Despite widespread need for financial services, the range and depth of financial markets, including stock markets, vary significantly across countries. One question in the literature is how to measure the development level of stock markets across countries for appropriate policy formations. This paper suggests capacity and effort measures of stock market capitalization, which consider country characteristics, as diagnostic tool to assess the gap between the actual level of stock market capitalization and the capacity of countries. It involves a panel study of 104 developing and developed countries for the period of 1990–2012. The analysis can deliver broad guidance for public reforms in countries with various levels of market capitalization. Cross-country comparisons with measures considering country characteristics can give a better idea on the state of financial systems. Consequently, countries can be more accurately categorized based on different problems such as unsustainable expansions or shallow financial markets.

This study examines the impact of financial development on economic growth in Nigeria using annual time series data between 1980 and 2014. The study tests for the unit root and cointegration to determine the time series properties of our variables before using ordinary least square estimation technique to evaluate the long-run estimates and possible policy inferences. The financial development indicators are financial deepening, bank deposit liability, private sector credit ratio, stock market capitalization and interest rate, while economic growth is measured by real gross domestic product. The results show that all the indicators of financial development except private sector credit ratio have positive impact on the economic growth in Nigeria. it implies that banking sector and stock market development played critical role in the output growth of the real sector. However, the negative impact of private sector credit indicate that provision of credit to investors do not enhance output due to high interest on loan as reported in the study. Thus, the study suggests that for the country to experience finance-led growth in Nigeria, the apex bank must ensure that loans are available to local industrial investors at a low interest rate. [ABSTRACT FROM AUTHOR]

This paper examines the effect of stock market capitalization and energy transition on the environment between 1994 and 2020, considering the roles of economic growth, natural resources, and international trade in Asian countries. The results indicate that stock market capitalization, energy transition, and natural resources reduce CO 2 emissions. International trade and economic growth are positively associated with CO 2 emissions. There is a suggestion that the government should encourage companies to determine the material business risks they face. Aside from traditional risks related to operations, technology, and the market, climate change-related risks should likewise be considered significant. • Check stock market capitalization and energy transition nexus for the environment. • Examine the impact of natural resources and world trade on the environment. • Stock market capitalization and energy transition improve the environment. • Natural resource depletion degrades the environment. • International trade deteriorates environmental sustainability. [ABSTRACT FROM AUTHOR]

This paper investigates whether there are Granger causal relationships between insurance market penetration, broad money, stock-market capitalization, and economic growth, using panel data for the Association of South East Asian Nations (ASEAN) Regional Forum (ARF) countries for the 1988–2012 period. Using a multivariate framework, we show that all the variables are cointegrated and reveal a network of causal connections, including short-run bidirectional causality between insurance market penetration and economic growth. Recommendations based on this study include establishing a sound regulatory framework for a country's insurance industry, and introducing professional education and certification of insurance personnel to ensure adherence to global best practices and standards. Moreover, opening up a country's domestic insurance market to larger foreign players can ensure a wider choice of cost-effective, quality insurance. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this study is to investigate the impact of foreign capital inflows and economic growth on stock market capitalization in Pakistan by using the annual time series data from the period of 1976 to 2011. Design/methodology/approach – The autoregressive distributed lag bound testing cointegration approach, the error correction model and the rolling window estimation procedures have been performed to analyze the long run, short run and behavior of coefficients, respectively. Findings – Results indicate that foreign direct investment (FDI), workers’ remittances and economic growth have significant positive relationship with the stock market capitalization in long run as well as in short run. Results of the dynamic ordinary least square and the fully modified ordinary least square suggest that the initial results of long-run coefficients are robust. Results of variance decomposition test show the bidirectional causal relationship of FDI and economic growth with stock market capitalization. However, unidirectional causal relationship is found in between workers’ remittances and stock market capitalization. Practical implications – It is suggested that in Pakistan, investors can make their investment decisions through keeping an eye on the direction of the considered foreign capital inflows and economic growth. Originality/value – This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the effects of foreign capital inflows and economic growth on stock market by using long time series data and applying more rigorous techniques. [ABSTRACT FROM AUTHOR]

The theoretical argument for the effects of foreign capital on stock market depth is the fact that additional capital needs additional financial intermediation. Foreign investors would need to finance their investment with either external capital or by selling equity. However, the fact that foreign investors oftentimes list their companies global stock exchanges rather than domestic ones tends to be overlooked. This article surveys the evidence on the impact of foreign capital on domestic stock market development, comparing the findings of macroeconomic vs. microeconomic studies. We find little agreement between these studies and a great need for more comprehensive analysis and understanding of the channels of the impact. [ABSTRACT FROM AUTHOR]