Badla Financing, Stock Returns and Volatility: The Case Study of Karachi Stock Exchange

Using badla financing as a measure of leverage we examine both temporal and contemporaneous links among badla financing, stock returns and market volatility. We find that the market volatility is significantly and positively related to the change in badla financing and to past market returns. We also observe a significantly positive temporal causation between prior market returns and both badla financing as well as stock price volatility.

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Year of publication:	2008-01-17
Authors:	Rashid, Abdul ; Ahmad, Shabbir
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Badla Financing \| Stock Returns \| Market Volatility \| Call Money Rate \| Exchange Rate

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Notes:	Published in The Empirical Economics Letters 7.7(2008): pp. 733-740
Classification:	G14 - Information and Market Efficiency; Event Studies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011111178