Impact of Price Indexes on Stock Market Prices of Banks in Financial Crises

Q3 Economics, Econometrics and Finance WSEAS Transactions on Business and Economics Pub Date : 2023-11-03 DOI:10.37394/23207.2023.20.209
Nursel Selver Ruzgar
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Abstract

During times of crises, stock markets often experience heightened volatility, and the banking sector is particularly susceptible. This study aims to investigate the impact of index values on the daily closing prices of five banks during five major financial crises in recent decades, using logistic regression analyses. The results show that in five crisis periods, different indexes have a significant impact on the daily stock price of banks. Although there is no pattern found for different crisis periods because each bank has different investment instruments, the index, ind38- CFMRC (VWI) Over $2, seems to have a highly significant impact on the crisis periods I-IV and ind37- CFMRC (DEWI) Over $2 plays a significant role in predicting the outcomes. The findings indicate that banks should give particular focus to their investment instruments, particularly value-weighted indexes (VWI) over $2 and equal-weighted indexes (DEWI) over $2 when any indications of a crisis arise. This is crucial because these index values influence the daily closing prices of banks and could potentially contribute to economic crises. Moreover, larger banks are more sensitive to changes in the index values than smaller banks, attributed to variations in their investment amounts.
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金融危机中价格指数对银行股票价格的影响
在危机时期,股市往往会经历剧烈波动,银行业尤其容易受到影响。本研究旨在探讨近几十年来五次主要金融危机期间,指数数值对五家银行每日收盘价的影响。结果表明,在五个危机时期,不同的指数对银行的日股价有显著的影响。虽然没有发现不同危机时期的模式,因为每家银行都有不同的投资工具,指数,ind38- CFMRC (VWI)超过2美元,似乎对危机时期I-IV和ind37- CFMRC (DEWI)超过2美元有非常显著的影响,在预测结果方面起着重要作用。研究结果表明,当出现任何危机迹象时,银行应特别关注其投资工具,特别是价值加权指数(VWI)超过2美元和等加权指数(DEWI)超过2美元。这一点至关重要,因为这些指数值会影响银行的每日收盘价,并可能导致经济危机。此外,由于投资金额的变化,大银行对指数值的变化比小银行更敏感。
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来源期刊
WSEAS Transactions on Business and Economics
WSEAS Transactions on Business and Economics Economics, Econometrics and Finance-Economics and Econometrics
CiteScore
1.50
自引率
0.00%
发文量
180
期刊介绍: WSEAS Transactions on Business and Economics publishes original research papers relating to the global economy. We aim to bring important work using any economic approach to a wide international audience and therefore only publish papers of exceptional scientific value that advance our understanding of finances. The research presented must transcend the limits of case studies, while both experimental and theoretical studies are accepted. While its main emphasis is economic, it is a multi-disciplinary journal and therefore its content mirrors the diverse interests and approaches of scholars involved with the international dimensions of business, economics, finance, history, law, marketing, management, political science, and related areas. It also welcomes scholarly contributions from officials with government agencies, international agencies, and non-governmental organizations.
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