Abstract

This study aims to determine the impact of macroeconomic variables on the stock return volatility of commercial banks in Pakistan. The macroeconomic variables used in this study are Interest rate, Exchange rate,Inflation rate, Balance of payment, and level of unemployment.Convenience sampling is used for this study. Panel data was invited for use in this study for analysis for the time period stated from 2007-to 2017. Data was collected from the data stream. Ont he basis of some econometric tests, a fixed-effect model was used.It was found that interest rate, exchange rate, and balance of payment have a positive while the inflation rate has a negative impact on stock return volatility of commercial banks in Pakistan.But unemployment has no significant impact thereon. This result is totally significant (P

Authors

1-Niaz Muhammad
Abdul Wali Khan University Mardan, KP, Pakistan

2-Wisal Ahmad
Assistant Professor, Abdul Wali Khan University, Mardan, KP, Pakistan

3-Yousaf Khan
National University of Modern Languages, Islamabad, Pakistan

Keywords

Microeconomics, Stock Return Volatility, Inflation Rate, Commercial Banks

DOI Number

10.31703/ger.2021(VI-III).04

Page Nos

31 – 40

Volume

VI

Issue

III