Title: Boom-bust cycles and their explanatory factors in the Tunisian stock market

Authors: Haifa Hammami; Younes Boujelbene

Addresses: Faculty of Economics and Management of Sfax, Department of Applied Economics, Road of Menzel Chaker Km 4.5, 3013 Sfax, Tunisia ' Faculty of Economics and Management of Sfax, Department of Applied Economics, Road of Menzel Chaker Km 4.5, 3013 Sfax, Tunisia

Abstract: In this paper an attempt is made to examine whether the monetary and financial indicators and behaviour of investors increase the occurrence probability of stock market boom and bust in Tunisia. To this end, we employ the ordered logit model on quarterly data during the period from 1999 Q2 to 2010 Q3. Based on the real Tunindex index, our findings provide interesting insights into the channels between the macroeconomic environment and boom-bust cycles. Our analysis puts in evidence that the monetary and financial indicators and behaviour of investors have played a key role in explaining Tunisian stock market boom-bust cycles.

Keywords: stock markets; boom-bust cycles; monetary indicators; financial indicators; investor behaviour; Tunisia; ordered logit model.

DOI: 10.1504/IJMFA.2013.053212

International Journal of Managerial and Financial Accounting, 2013 Vol.5 No.2, pp.202 - 218

Published online: 11 Oct 2014 *

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