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Article
Publication date: 25 April 2022

Niaz Hussain Ghumro, Ishfaque Ahmed Soomro and Ghulam Abbas

This study investigates the asymmetric effects of exchange rate and investors' sentiments simultaneously on stock market performance in the United States context. In addition, we…

Abstract

Purpose

This study investigates the asymmetric effects of exchange rate and investors' sentiments simultaneously on stock market performance in the United States context. In addition, we have also considered the potential effect of the global financial crisis of 2008 on this nexus.

Design/methodology/approach

We have employed the NARDL (nonlinear autoregressive distributed lag) model on monthly data ranging from January-1999 to December-2018 to investigate the asymmetric (short- and long-run) effects of exchange rate and investors' sentiments on stock market performance. We have also broken down the data into two segments, pre and post-crisis periods to capture the effect of the global financial crisis of 2008.

Findings

The findings of the study reveal that exchange rate and investors' sentiments simultaneously affect stock market performance and omitting any of these variables can produce misleading results. Results also show that the effect of sentiments is stronger than the exchange rate. There is significant evidence of asymmetric short-run and long-run effects of both explanatory variables. Moreover, we have found different outcomes for pre and post-crisis periods. Specifically, the impact of macroeconomic variables on the stock market has been substantiated in the post-crisis period.

Originality/value

Several studies are available which separately evidence the effects of investors' sentiments and exchange rate on performance of the stock market but they can suffer from the problem of omitted variable bias. This study is conducted to test the said effect simultaneously in a single model. Moreover, this study is considering short-run and long-run asymmetry in analyzing the effects of explanatory variables along with the inclusion of the global financial crisis of 2008.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 1 October 2021

Nisar Ahmed Channa, Beenish Tariq, Altaf Hussain Samo, Niaz Hussain Ghumro and Naveed Akhtar Qureshi

Using three theoretical lenses − organismic integration theory (OIT), theory of values-belief-norm (VBN) and gender schema theory (GST) − this study aims to examine the effect of…

1788

Abstract

Purpose

Using three theoretical lenses − organismic integration theory (OIT), theory of values-belief-norm (VBN) and gender schema theory (GST) − this study aims to examine the effect of environmental factors (environmental attitude, environmental concerns, perceived environmental responsibility and peer influence) on consumers' intentions to purchase eco-friendly athletic wear.

Design/methodology/approach

A sample of n = 380 Pakistani consumers was used to test hypothesized relationships. Data were analyzed through the partial least square structural equation modeling (PLS-SEM) technique using SmartPLS version 3.3.3.

Findings

Findings suggest that environmental attitude, environmental concerns, perceived environmental responsibility and peer influence are positively associated with green purchase behavior. The moderating effects of individual green values were found statistically significant between peer influence and green purchase behavior. The data further revealed that the effect of environmental attitude, environmental concerns, peer influence and perceived environmental responsibility on green purchase behavior varies across the gender.

Originality/value

This research is one of the first attempts to explore the effect of environmental motivational factors on consumers' intentions to purchase eco-friendly athletic wear using theories of OIT, VBN and GST. This study employs advanced analytical methods to perform multi-group analysis and establish the predictive relevance of the model, using PLS-SEM in sports management and marketing context.

Details

International Journal of Sports Marketing and Sponsorship, vol. 23 no. 2
Type: Research Article
ISSN: 1464-6668

Keywords

Abstract

Details

International Journal of Sports Marketing and Sponsorship, vol. 23 no. 2
Type: Research Article
ISSN: 1464-6668

Article
Publication date: 9 December 2020

Bisharat Hussain Chang, Niaz Ahmed Bhutto, Jamshid Ali Turi, Shabir Mohsin Hashmi and Raheel Gohar

This study examines the short-run and long-run impact of macroeconomic variables such as industrial production index, inflation, exchange rate, interest rate, foreign direct…

Abstract

Purpose

This study examines the short-run and long-run impact of macroeconomic variables such as industrial production index, inflation, exchange rate, interest rate, foreign direct investment and trade balance, on KSE 100 index and sectorial stock indices under bearish, bullish and normal states of the stock market prices. Moreover, we take into account the effect of three crises observed from 2005 to 2009.

Design/methodology/approach

This study uses quantile autoregressive distributed lag (QARDL) model for examining the short-run and long-run effect across various quantiles of the dependent variables and compare its' results standard autoregressive distributed lag (ARDL) model.

Findings

ARDL estimates indicate that, in the long-run, industrial production index, trade balance and foreign direct investment significantly affect stock prices. These findings remain same when three crises have been taken into consideration. In addition, estimates from QARDL model indicate that, in the short-run, the effect of exchange rate, interest rate, consumer price index and foreign direct investment, varies across bearish, bullish and normal states of the overall stock prices. Moreover, the short-run findings for Auto Assembler, Cement, Commercial Banks sector are consistent with overall stock indices, whereas other sectors, such as, Oil and Gas and Power Generation and distribution are asymmetrically affected by all macroeconomic variables. In the long-run, the effect of all macro-variables varies across different states of the stock markets except industrial production index for Auto Assembler sector, Oil and Gas sector and composite index of KSE 100 index.

Originality/value

We take into account the effect of three crises observed from 2005 to 2009 and also examine the macroeconomic effect across bullish, bearish and normal states of the sectorial stock indices and composite index of Pakistan stock exchange. Finally, we use novel approach, called QARDL model, which has several advantages over other techniques.

Details

South Asian Journal of Business Studies, vol. 10 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 4 May 2020

Bisharat Hussain Chang, Suresh Kumar Oad Rajput, Niaz Ahmed Bhutto and Zahida Abro

Recent literature has shifted to examining whether exchange rate volatility symmetrically or asymmetrically affects the trade flows. This study aims to extend the existing…

Abstract

Purpose

Recent literature has shifted to examining whether exchange rate volatility symmetrically or asymmetrically affects the trade flows. This study aims to extend the existing literature by examining the effects of extremely large to extremely small changes in exchange rate volatility series on the US imports from Brazil, India, Mexico and South Africa.

Design/methodology/approach

For examining the effects of extreme changes, multiple threshold nonlinear autoregressive distributed lag (MTNARDL) model is used and the exchange rate volatility series is divided into quintiles and deciles. It helps to examine the effects of each quintile/decile of exchange rate volatility series on the US imports.

Findings

Findings indicate that the effects of extremely large changes in the exchange rate volatility series significantly differ from the effects of extremely small changes in the exchange rate volatility series on the US imports.

Practical implications

The findings of this study are very important. These findings help to consider the effect of extreme changes before devising policies related to trade flows.

Originality/value

This study mainly focuses on US imports from Brazil, India, Mexico and South Africa. In addition, this study extends the existing literature by using a novel methodology called MTNARDL model.

Details

Studies in Economics and Finance, vol. 37 no. 2
Type: Research Article
ISSN: 1086-7376

Keywords

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