ASSESSING THE ROLE OF MACROECONOMIC VARIABLES ON STOCK PRICE VOLATILITY: A CASE OF PAKISTAN STOCK EXCHANGE

Muhammad Asim Khan

Abstract


The purpose of executing this research study was to assess
the role of macroeconomic variables on stock price volatility.
Specifically 10 companies were chosen that are listed on the
Pakistan Stock Exchange. The following are the objectives which
were devised for this study, to understand the basic concepts and
features of stock exchange with respect to investments and economic
development; to identify important and appropriate macroeconomic
factors having influence on stock prices and to evaluate the impact
of macroeconomic variables on stock price volatility in the context
of companies listed on the Pakistan Stock Exchange. We adopted
secondary method for data collection and the results extracted
through correlation and regression analysis displayed that
macroeconomic variables including interest rate, inflation rate and
the corporate tax rate affect share prices of companies operating in
Pakistan.


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