EFFECTS OF BUSINESS AND CONSUMER CONFIDENCE ON STOCK MARKET RETURNS: CROSS-SECTIONAL EVIDENCE
VICHET SUMABSTRACT. 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. pp. 21–25
JEL Codes: G10; G12; G14
Keywords: business confidence; consumer confidence; stock market returns
How to cite: Sum, Vichet (2014), “Effects of Business and Consumer Confidence on Stock Market Returns: Cross-sectional Evidence,” Economics, Management, and Financial Markets 9(1): 21–25.