Does Governance Quality Enhance Stock Market Performance: Empirical Evidence from Pakistan

The current study examined the impact of governance on stock market performance in Pakistan. The study employed the ARDL model using Pakistani data with complete relevant data for the period spanning from 1996 to 2018. The study reveals that quality of governance as captured by voice and accountabil...

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Bibliographic Details
Published in:Review of Applied Management and Social Sciences 2022-06, Vol.5 (2), p.207-217
Main Authors: Khan, Ahsan Aslam, Munir, Farzana, Abbas, Javaria, Umar, Muhammad
Format: Article
Language:English
Online Access:Get full text
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Summary:The current study examined the impact of governance on stock market performance in Pakistan. The study employed the ARDL model using Pakistani data with complete relevant data for the period spanning from 1996 to 2018. The study reveals that quality of governance as captured by voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, the rule of law, and control of corruption positively affect stock market performance. The findings suggest countries with better developed political systems would favor stock markets with higher market capitalization, better turnover ratios, higher value in shares traded, and a greater number of listed companies.
ISSN:2708-2024
2708-3640
DOI:10.47067/ramss.v5i2.229