Stock Market Reactions due to Announcements of Consumer Price Index and the Investigation of Endogeneity

Subhani, Muhammad Imtiaz and Osman, Ms. Amber (2011): Stock Market Reactions due to Announcements of Consumer Price Index and the Investigation of Endogeneity. Published in: Interdisciplinary Journal of Contemporary Research in Business , Vol. 3, No. 1 (2011): pp. 878-884.

Abstract

In the financial market the very peculiar and key focus is about the trading volume response to Consumer price index (CPI). Therefore, taking CPI as one of the important economic variables, the Karachi Stock Exchange-100 index trading volume was investigated in connection with the CPI. The outcomes of this study suggested that CPI has a major association with the KSE-100 index trading volume. The statistical test further elaborated this significance and has revealed a negative relationship between CPI “Consumer price index” and “KSE-100 index trading volume”. Another interesting key feature to this research was the presence of endogeneity in the data used for the research.

• Item Type: MPRA Paper
• Language: English
• Keywords: Consumer price index (CPI) announcements, Trading Volume, Endogeneity
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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