Impact of Exchange Rate on Stock Returns in Shenzhen Stock Exchange

International Journal of Economics and Management Vol. 1 Issue (2) pp 15 - 26, 2019

12 Pages Posted: 31 May 2019

See all articles by Muhammad Kamran Khan

Muhammad Kamran Khan

Northeast Normal University - School of Economics

Date Written: May 8, 2019

Abstract

This research investigate the influence of exchange rate on the stock returns of Shenzhen stock exchange from January 2008 to December 2018 by utilizing ARDL model for checking the short run and the long run association between the study variables. The estimated ARDL results indicate that exchange rate has a negative and significant influence on the stock returns of Shenzhen stock exchange. Inflation and interest rate results indicate a negative and statistically significant effect on the stock returns. Based on the estimated results of this study it is recommended that the policy makers in Central bank needs to make such policies that helps to stabilize the exchange rate.

Keywords: Exchange Rate, Interest Rate, Inflation rate, Stock returns, ARDL

Suggested Citation

Khan, Muhammad Kamran, Impact of Exchange Rate on Stock Returns in Shenzhen Stock Exchange (May 8, 2019). International Journal of Economics and Management Vol. 1 Issue (2) pp 15 - 26, 2019. Available at SSRN: https://ssrn.com/abstract=3384828

Muhammad Kamran Khan (Contact Author)

Northeast Normal University - School of Economics ( email )

China

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