Banks, non-bank companies and stock exchange: do we know the relationship?

Ghimire, Binam, Gautam, Rishi, Karki, Dipesh and Sharma, Satish (2015) Banks, non-bank companies and stock exchange: do we know the relationship? Economics and Business Review, 1(15) (4). pp. 25-45. ISSN 2392-1641

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Official URL: http://dx.doi.org/10.18559/ebr.2015.4.3

Abstract

This paper investigates the role played by the banking sector in founding, sustaining and developing stock exchange markets. The paper has constructed data on market capitalisation separately for banks and non-bank companies. We apply cointegration techniques developed by Engle and Granger [1987] and Johansen [1988] and we bootstrap the variables to examine the nature of relationship between the banks and stock markets. We found that banks have played an important role in the development of stock exchanges. Further, the empirical analysis made amongst ten developed and developing exchanges suggests a listing of non-bank companies important for development of stock markets. These findings have also been verified by analysing the data of an exchange not included in the test.

Item Type: Article
Subjects: N300 Finance
Department: Faculties > Business and Law > Newcastle Business School > Accounting and Finance
Depositing User: Binam Ghimire
Date Deposited: 02 Feb 2016 12:04
Last Modified: 14 May 2017 16:51
URI: http://nrl.northumbria.ac.uk/id/eprint/25809

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