Corruption, secteur bancaire et développement du marché boursier : cas des pays de la zone EURO

Missaoui, Ibtissem and Ben Rejeb, Jaleleddine (2017): Corruption, secteur bancaire et développement du marché boursier : cas des pays de la zone EURO.

Abstract

Through this study we have tried to assess the effects of corruption and the development of the banking system on the development of the stock market of a group of 11 countries in the EURO zone over the period 2006-2015, using a dynamic panel data model.The key findings of this empirical trial are a positive relationship between the level of corruption and the improvement of the financial system. We observe a negative relationship between the development of the banking sector and the development of the stock market. This article also shows that the capital ratio of banks on assets and savings are important determinants of the development of the stock market in the countries of the euro zone. In this study, we also examine the effect of the interaction between corruption and the development of the banking system on the stock market. We find a negative relationship between the interaction term and the development of the stock market. This result shows that the devastating effects of corruption in these countries have an excessive impact on the development of the banking sector.

• Item Type: MPRA Paper
• English Title: Corruption, the banking sector and the development of the stock market: the case of the countries of the EURO zone
• Language: French
• Keywords: Keyword: -Market capitalization - GDP - corruption - development of the banking sector - stock market development - euro area countries - interaction.
• Subjects: G - Financial Economics > G1 - General Financial Markets

References

- Ahlin, C. and J. Pang, 2008. Are financial development and corruption control substitutes in promoting growth? Journal of Development Economics, 86(2): 414–433.

- Albertazzi, U. and L. Gambacorta, 2009. Bank profitability and the business of Economic Perspectives. 19(3), 19–42

- Athanasouli, D., A. Goujard and P. Sklias, 2012. Corruption and firm performance: Evidence from Greek firms. International Journal of Economic Sciences and Applied Research, 5(2): 43-67.

- Baltagi, B. (2005). Econometric Analysis of Panel Data (Third Edition). England: John Wiley & Sons LTD.

- Bencivenga, V. R. & Smith, B. D. (1996). Equity Markets, Transaction Costs, and Capital Accumulation: An Illustration. The World Bank Economic Review, 10(2), 241-265.

- Bolgorian, M. (2012). Corruption and stock market development: A quantitative approach. Physica A (390), 4514-4521.

- Cherif, M &Gazdar, K. (2010). Macroeconomic and Institutional Determinants of Stock Market Development in MENA Region: New Results from A Panel Data Analysis. International Journal of Banking and Finance, 7(1), 138-159.

- Ciocchini, F., Durbin, E. &Ng, N. (2003). Does Corruption increase emerging market bond spreads? Journal of Economics and Business, 55, 502-528.

- Finance 31: 907–929

- Garcia, F. V. & Lin, L. (1999). Macroeconomic Determinants of Stock Market Development. Journal of Applied Economics, 2(1), 29-59.

- Hearn, B., &Piesse, J. (2010). Barriers to the Development of Small Stock Markets: A Case Study of Swaziland and Mozambique. Journal of International Development, 22, 1018-1037.

- Ibtissem Missaoui; Tarek Bouchaddekh (2015). l’impact du développement du marché boursier sur le coût des capitaux propres : validation empirique sur la BVMT. ISSN 1923-2993 Journal of Academic Finance J.A.F.) N° 5 fall 2015

- Kemboi, J. &Tarus, D. (2012). Macroeconomic Determinants of Stock Market Development in Emerging Markets: Evidence from Kenya. Research Journal of Finance and Accounting, 3(5), 57-68.

- Levine, R., &Zervos, S. (1998). Stock Markets Banks and Economic Growth. American Economic Review, 88, 537-558.

- Moosa, I. A. (1998). An investigation into the Cyclical Behavior of Output, Money, Stock Prices and Interest rates. Applied Economic Letters, 5(4), 151-158.

- Naceur, S., Ghazouani, S., &Omrani, M. (2007). The Determinants of Stock Market Development in the MENA Region. Managerial Finance, 33(7), 477-489.

- Park, J. (2012). Corruption, soundness of the banking sector, and economic growth: A cross-country study. Journal of International Money and

- Shleifer, A. &Vishny, R.W. (1993). Corruption. The Quarterly Journal of Economics, 108(3), 599–617.

- Svensson, J. (2005). Eight Questions about Corruption. Journal Development in Emerging Economies: Is South Africa Different? IMF working Paper-

- Yartey, C. A. (2008). Determinants of Stock Market cycle. Journal of Financial Stability, 5(4): 393–409.

- Yartey, C. A. (2010). The Institutional and Macroeconomic Determinants of Stock Market Development in Emerging Economies. Appliedfinancial Economics, 20, 1615–1625.