No 10, Issue 2       

The Macroeconomic Determinants and Their Impact on Stock Returns

Mohamad ZREIK | Badar Alam IQBAL | Sharifah Zannierah Syed MARZUKI

Pages 5-18

Abstract

Investors in every economy may gauge stock returns by trading the many equities available to them. So, the primary purpose of trading is to generate an efficient, positive flow of funds to investors. The trade’s primary focus is the character of ownership represented by the claim in the proportion of the partnership as established by the profits and assets. As a result, the investment should be geared toward producing a sound profit from the capital outlay. The rate of return is the amount of money made from an investment after factoring in the impact of market fluctuations. An online questionnaire served as the primary data collector for this investigation. This was utilized to acquire massive volumes of data from a wide range of individuals across many financial institutions. The study acquired the necessary data in the shortest t amount of time possible while also keeping costs to a minimum thanks to this approach. It is hoped that the following suggestions may increase the volume of stock investing in Lebanon. Researchers, policymakers, financial advisers, and individual investors may all benefit from the findings of this research. However, a hybrid technique, including both quantitative and qualitative methods of data collecting, is strongly suggested for the study. Managers’ perspectives on the variables that might affect stock returns in Lebanon can be studied through a survey for the quantitative approach, and in-depth interviews with key stakeholders for the qualitative. However, it is also advised to gather data over a ten-year period on the macroeconomic causes and then evaluate them using a panel regression. One alternative is to examine the differences between Lebanon and other nations via comparative research.

Keywords

Inflation; Interest Rate; Money Supply; Stock Returns

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