Universal Journal of Accounting and Finance Vol. 2(2), pp. 33 - 39
DOI: 10.13189/ujaf.2014.020201
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Macroeconomic Variables & Its Impact on KSE-100 Index

Muhammad Salman Khan ^*
Institute of Management Sciences, Hayatabad, Peshawar, Pakistan

ABSTRACT

The study examines the relationships between the KSE-100 index and a set of macroeconomic variables over sampling period from (1992) to (2011) Statistical tools i.e. Multiple Regressions and Pearson’s correlation models were used to study the relationship between stock prices (KSE-100index) and macroeconomic variables. The finding from the test shows (80%) variations in the dependent variable were explained by the independent variable. Therefore, the model was good fitted and there was a strong relationship between dependent and independent variables, variation in the stock prices explained up to (80%) by the variation in the independent variables. The results further suggested that exchange rate, inflation and GDP (Gross domestic product) growth rate were positively related with stock prices (KSE-100index). While negative impact found on the stock prices of KSE-100 index of the interest rate

KEYWORDS
Macroeconomic Variables, KSE-100 Index, Pearson’s Product Movement Correlation Coefficient and Multiple Regression Models

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Muhammad Salman Khan , "Macroeconomic Variables & Its Impact on KSE-100 Index," Universal Journal of Accounting and Finance, Vol. 2, No. 2, pp. 33 - 39, 2014. DOI: 10.13189/ujaf.2014.020201.

(b). APA Format:
Muhammad Salman Khan (2014). Macroeconomic Variables & Its Impact on KSE-100 Index. Universal Journal of Accounting and Finance, 2(2), 33 - 39. DOI: 10.13189/ujaf.2014.020201.