Open AccessThe Effect of Macroeconomic Variables On the Saudi Stock Market
Author(s) -
Amani Mohammed Aldukhail
Publication year - 2019
Publication title -
archives of business research
Language(s) - English
Resource type - Journals
ISSN - 2054-7404
DOI - 10.14738/abr.712.7508
Subject(s) - stock market , economics , stock (firearms) , stock market index , econometrics , interest rate , inflation (cosmology) , regression analysis , monetary economics , stock market bubble , variables , financial economics , statistics , mathematics , mechanical engineering , paleontology , physics , horse , theoretical physics , engineering , biology
This study aimed at exploring the effect of macroeconomic variables on the activity of the Saudi stock market for the period 1997-2017. Macroeconomic variables were: GDP, interest rate on time deposits, inflation rate. The variables of the Saudi stock market activity were: stock price index, market value of shares, value of traded shares. To achieve this objective, the researcher used the ARDL model for the self-regression of the lagged distributed time gaps.
The most important results of the research are: The effect of macroeconomic variables on the performance indicators in the Saudi stock market is not important in the short term and is statistically significant in the long term according to the proposed models, so investors in this market can rely on macroeconomic variables in Predict the movement of the stock market and predict long-term profits and losses.