The Long-Run Relationship between Share Prices,Dividends and Retained Earning Evidence from Pakistan Economy

摘要：

This paper is an attempt to examine the short and long run relationship among share prices,dividends and retained earning in Pakistan economy.The time-series econometric techniques are applied to the annual data for the period 1970 to 2006.An important feature of our analysis is the use of tests for unit roots and Johansen cointegration and ECM.Johansen cointegration has a number of advantages over the traditional approaches of causality.Certain characteristics of the Pakistani experience suggest that there is a stable long run relationship.Radical changes in dividends and retained earning have significantly affected the movement in the share prices.Financial liberalization and reforms started in early 1990s,as part of economic reforms has a very strong net effect on the share prices.It means that stock market is too much sensitive and volatile to financial liberalization in emerging economies.We find that a long-run relationship exists among share prices (SP),dividends (DIV) and retained earning (RE).

作者: Nishat,Mohammed Waliullah

作者单位: Institute of Business Administration,Karachi,Pakistan University of Malakand,Pakistan

会议类型: 国际会议

会议名称: PAN-PACIFIC CONFERENCE XXVI(“战略创新、协作融合泛太平洋管理学会第26届年会)

会议地点: 深圳

会议语种:英文

页码: 306-308

在线出版日期: 2009-06-01（万方平台首次上网日期，不代表论文的发表时间）