The Asymmetric Impact of Fiscal Policy on an Emerging Stock Market-Reference-Cited by-同舟云学术

The Asymmetric Impact of Fiscal Policy on an Emerging Stock Market

Published:2022-10-31 Issue:Early View Volume:4 Page:
ISSN:2652-8681
Container-title:Asian Economics Letters
language:en
Short-container-title:

Author:

Lee Chee Loong¹^ORCID,Ng Chee Pung²,Koh Chin Min¹,Ahmad Riayati³

Affiliation:

1. Universiti Tunku Abdul Rahman, Malaysia

2. INTI International University, Malaysia

3. Universiti Kebangsaan Malaysia, Malaysia

Abstract

This study investigated the asymmetric impact of fiscal policy on Malaysia’s stock market. It discovered that fiscal policy has no impact on the stock market performance in the long run. However, budget expansion boosted the stock market return, while budget contraction worsened it in the short run. Therefore, fund managers can adjust their portfolios based on fiscal news in the short run to maximize their returns.

Publisher

Asia-Pacific Applied Economics Association

Subject

General Medicine

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