Appraising the Effect Of Macroeconomic Variables On Stock Returns

Subject Areas : Futurology

Zahra Pourzamani ¹ , Azita Jahanshad ² , Hashem Kamali Rezaei ³

1 - مسئول مکاتبات
2 - ندارد
3 - ندارد

Received: 2009-09-22 Accepted : 2010-01-28 Published : 2011-06-22

Keywords: Macroeconomic variables, Growth of employee rate, GDP, Inflation, Growth of stock price index, Stock Returns, Tehran Security Exchange,

Abstract :

Investors consider macroeconomics variables in making decision about their investments. This implies thatthey seek to decline investment risk (systematic risk) and obtain expected returns. The goal of this study is toinvestigate the effect of macroeconomic variables of employee rate, Gross Domestic Product (GDP), inflationand growth of stock price index on stock returns in Tehran Security Exchange in period 1379-1385 using theregression model. The results of research indicate that growth of employee rate do not have significant effect onreturns and GDP (limit effect), inflation (negative limit effect) and growth of stock price index (significanteffect) affect returns affect returns. To understand the effect of macroeconomic variables on share returns canhelp investors to make decisions appropriately and also can help policymakers to direct macroeconomic policiesand to determine the effect of these policies on security exchange.