Volume : VI, Issue : XII, December - 2017
IMPACT OF MACROECONOMIC VARIABLES ON SHARE PRICE OF SELECT BANKS: A FACTOR ANALYSIS APPROACH
Dr. M. Jegadeeshwaran, Siva Thivya. R
Abstract :
The Macroeconomic variables have influenced the share price of banking companies. This paper is based on the average monthly data (April, 2007 to March, 2017) of 12 macroeconomic variables. The factor analysis is adopted to derive the macroeconomic factors which determine the performance of stock market in India. Extracted factors were labelled namely, Macro Environment, Price Factor and Money Supply. Macro environment and money supply are the most influencing factors of share price in select Banks. Multiple regression is employed to analyze the impact of identified macro economic factors on share price of the select Banks. It has been established that there is a strong association between the share price of BSE and NSE.
Keywords :
Arbitrage Pricing Theory Stock Market Macro Environment Data Reduction Factor Analysis Factor Scores
Article:
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DOI : https://www.doi.org/10.36106/gjra
Cite This Article:
Dr.M.JEGADEESHWARAN, SIVA THIVYA.R, IMPACT OF MACROECONOMIC VARIABLES ON SHARE PRICE OF SELECT BANKS: A FACTOR ANALYSIS APPROACH, GLOBAL JOURNAL FOR RESEARCH ANALYSIS : VOLUME-6, ISSUE-12, DECEMBER-2017
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References :
Dr.M.JEGADEESHWARAN, SIVA THIVYA.R, IMPACT OF MACROECONOMIC VARIABLES ON SHARE PRICE OF SELECT BANKS: A FACTOR ANALYSIS APPROACH, GLOBAL JOURNAL FOR RESEARCH ANALYSIS : VOLUME-6, ISSUE-12, DECEMBER-2017