the political institution and stock mark(4).pptx

muhammadbdul1536 6 views 23 slides May 17, 2024
Slide 1
Slide 1 of 23
Slide 1
1
Slide 2
2
Slide 3
3
Slide 4
4
Slide 5
5
Slide 6
6
Slide 7
7
Slide 8
8
Slide 9
9
Slide 10
10
Slide 11
11
Slide 12
12
Slide 13
13
Slide 14
14
Slide 15
15
Slide 16
16
Slide 17
17
Slide 18
18
Slide 19
19
Slide 20
20
Slide 21
21
Slide 22
22
Slide 23
23

About This Presentation

nothing


Slide Content

Topic Political Institutions and Stock Market Resilience

Introduction Empirical Evidence Literature Review of China,Thailand,India,Pakistan & Japan Research Objectives Research Techniques Research Methodology Research Significance Conclusion

Introduction Political Institutions and Stock Market Resilience Strong political institutions (e.g. rule of law, democratic governance) promote: Investor confidence Economic stability Effective regulation Reduced political risk Weak political institutions lead to: Increased uncertainty Political instability Economic volatility Reduced investor confidence

Stock Prices and Economic Policy Uncertainty Economic policy uncertainty has a significant impact on stock prices Increased uncertainty leads to: Decreased stock prices Increased volatility Clustering of observations around periods of high economic policy uncertainty Positive correlation between stock prices and economic policy uncertainty

Strong political institutions lead to: Increased foreign direct investment (FDI) Improved human development and education Enhance innovation and entrepreneurship Reduced poverty and income inequality Political institutions matter for economic growth: Rule of law and property rights protection attract investment Effective governance and corruption control boost investor confidence Stable political environment encourages long-term investment

Empirical Evidence Studies have shown that countries with strong political institutions experience: Lower stock market volatility Faster recovery from financial crises Greater foreign investment Improved economic growth

Islamic Finance vs. Stock Markets (ISM) Investment principles: Islamic Finance: H alal (permissible) investments No Riba (interest) Stock Markets (ISM): No restrictions interest allowed Debt financing: Islamic Finance : Limited, no excessive debt Stock Markets (ISM): Common, high leverage allowed Literature Review

Islamic Stock Market focus on: Innovation technology telecommunications Healthcare consumer goods construction and real estate Benefits Islamic finance is ownership-based and asset-driven low leverage ratio need low interest rates less volatile

Theory and themes: governance for urban resilience Theories Social-ecological systems Urban political economy Institutional collective action Themes: Collaborative governance Adaptive capacity inclusive decision-making Multi-level governance Public-private partnerships Community engagement and participation Risk management and adaptation Urban planning and design

Thailand literature Review Thailand's Healthcare System and Stock market Resilience Ministry of Public Health is the primary healthcare provider Public sector controls majority of healthcare system Universal health coverage with high financial risk protection and little unmet healthcare need Robust government health systems with dense health workforce Programs to encourage students from remote areas to pursue careers in nursing and medicine- Field Epidemiology Training Program for zoonotic disease surveillance and management

Thailand's stock market is a fast-emerging market in Asia, playing a vital role in boosting the economy ( Chaiyasit , 2020) GDP growth fluctuations: 2009 (-1.19%), 2010 (6.99%), 2012 (6.7%), 2014 (0.55%), and 2017 (3.66%) (World Bank, 2020) Stock market development (SMD) contributes to economic growth (EG) and is a good indicator of EG ( Wongsurawat , 2017)

Financial Distress in Pakistan: Urbanization, Resilience, and Prediction Factors contributing to financial distress in Pakistan include: Low liquidity, excessive debt, low profitability, and diminishing cash flows Economic downturns, industry-specific difficulties, and unfavorable market conditions Insufficient management techniques and strategic errors Financial ratios (profitability, solvency, liquidity) and macroeconomic variables (GDP growth, interest rates, inflation) are significant indicators of future financial distress. Good governance practices can mitigate financial hardship.

Research gaps: Longitudinal studies needed to understand the development of financial distress in Pakistan. Institutional and cultural quirks of Pakistan's business environment require further exploration. Policy recommendations: Stakeholders should monitor financial ratios and macroeconomic variables to take proactive measures against financial distress. Regulators and policymakers can use research findings to create long-term plans for handling financial crises.

India's Economic Recovery and Resilience India faces a complex economic crisis, exacerbated by the pandemic, with unique challenges compared to developed economies. To recover and achieve sustained high growth, India needs effective fiscal and monetary policies, agile trade policies, and long-term resilience. Key obstacles include geopolitical, geo-economics, and strategic challenges, as well as managing the economic crisis.

literature review of Japan's political institutions and stock market Resilience in Japan's Stock Market : Japan's stock market has shown resilience in the face of challenges, with the Bank of Japan playing a crucial role in maintaining financial stability. Political Institutions : Political institutions, such as the Ministry of Finance, have been involved in shaping the country's economic policies and capital markets.

Stock Market Resilience Factors of china Government Support : Established stock exchanges to discourage unorganized trading.- Regulatory Framework : Implemented policies to prevent bank funds from flowing into the stock market Market Diversification : Multiple markets, including money, capital, and derivative markets, contribute to resilience. Participant Diversity : Retail investors, mutual funds, sovereign wealth funds, and qualified foreign institutional investors contribute to market resilience.

Political institution of China State Council : Chief administrative body, oversees government ministries and agencies Communist Party of China (CPC) Central Committee : Top decision-making body, sets party policies and direction- People's Liberation Army (PLA): Military force, plays significant role in national security and political affairs

Research Objectives Analyze the impact of political institutions on stock market resilience in China, Japan, Pakistan, India, and Thailand Examine the effects of political institutions on poverty alleviation, economic growth, and environmental sustainability Investigate the factors influencing stock market resilience, including: Stability of governance Regulatory frameworks Transparency Rule of law

Research Techniques:- Comparative analysis of political institutions and stock market performance across countries- Case studies of significant political and economic events affecting stock markets Content analysis of policy documents, news articles, and social media to assess transparency and governance

Research Significance: Informed decision-making : Understanding the relationship between political institutions and stock market resilience can aid decision- makers and investors in making informed decisions.- Policy initiatives : Identifying political and economic factors that support stock market resilience can inform policy initiatives aimed at promoting financial stability.

Methodology: Comparative Case Study Analysis: In order to find patterns distinctions and causal relationships comparative case study analysis looks at several cases in this case the stock markets of China Japan Pakistan India and Thailand. Scholars have the ability to contrast the performance of stock markets in times of political stability and unpredictability as well as in various regulatory contexts.

- SMRi,t = Stock Market Resilience (e.g., stock market index returns or volatility) in country i at time t - PIi,t = Political Institutions (e.g., democracy index, political stability, or corruption perceptions) in country i at time t - GDPi,t = Gross Domestic Product (GDP) growth rate in country i at time t - INFi,t = Inflation rate in country i at time t - TRi,t = Trade openness (e.g., trade-to-GDP ratio) in country i at time t - εi,t = Error term - β1 represents the impact of political institutions on stock market resilience - β2, β3, and β4 control for the effects of GDP growth, inflation, and trade openness, respectively

Economic Policy Uncertainty (EPU) affects stock prices variably across countries Political institutions play a crucial role in investment and growth - Balance between stability and flexibility is key- Islamic Finance and Stock Markets operate on principles of Shariah compliance - Urban resilience governance requires collective management and prioritizing the vulnerable- Predicting financial distress in Pakistan requires examining corporate governance, financial ratios, and macroeconomic factors conclusion
Tags