Economics and Business Review

ISSN 2392-1641
e-ISSN 2450-0097

Poznań University of Economics - Poland

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Volume 1 (15) Number 4 pp. 25-45

Binam Ghimire1, Rishi Gautam2, Dipesh Karki1, Satish Sharma1

1Newcastle Business School, Northumbria University, Newcastle, U.K.
2
Shaker Dev Campus, Tribhuvan University, Kathmandu, Nepal

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

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.
pub/2015_4_25.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume15/issue4/2015_4_25.pdf
Keywords: financial development, banks, stock exchanges, cointegration, bootstrap

DOI: 10.18559/ebr.2015.4.3

For citation:

MLA Ghimire, Binam, et al. "Banks, non-bank companies and stock exchange: do we know the relationship?." Economics and Business Review EBR 15.4 (2015): 25-45. DOI: 10.18559/ebr.2015.4.3
APA B., G., R., G., D., K., & S., S. (2015). Banks, non-bank companies and stock exchange: do we know the relationship?. Economics and Business Review EBR 15(4), 25-45 DOI: 10.18559/ebr.2015.4.3
ISO 690 GHIMIRE, Binam, et al. Banks, non-bank companies and stock exchange: do we know the relationship?. Economics and Business Review EBR, 2015, 15.4: 25-45. DOI: 10.18559/ebr.2015.4.3