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Effects of business and consumer confidence on stock market returns: Cross-sectional evidence
Economics, Management, and Financial Markets (2014)
  • Vichet Sum
Abstract

This paper examines the effects of business and consumer confidence on stock market returns. Based on the analysis of monthly data from thirty-one countries, the results show that business and consumer confidence has a positive effect on stock market returns. The findings reveal that change in consumer confidence has a stronger effect on stock market returns across countries than the change in business confidence. The results are useful for stock market valuation, investment and risk management.

Keywords
  • business confidence,
  • consumer confidence,
  • stock market returns
Publication Date
March 2, 2014
Citation Information
Vichet Sum. "Effects of business and consumer confidence on stock market returns: Cross-sectional evidence" Economics, Management, and Financial Markets Vol. 9 Iss. 1 (2014)
Available at: http://works.bepress.com/vichetsum/35/