Transcription of THE RELATIONSHIP BETWEEN EXCHANGE RATES …
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North American Journal of Finance and Banking Research Vol. 4. No. 4. 2010. Gopalan Kutty 1 THE RELATIONSHIP BETWEEN EXCHANGE RATES AND STOCK PRICES: THE CASE OF MEXICO Gopalan Kutty1 Mansfield University, USA ABSTRACT This paper examines the RELATIONSHIP BETWEEN stock prices and EXCHANGE RATES in Mexico. The Granger causality test shows that stock prices lead EXCHANGE RATES in the short run, and there is no long run RELATIONSHIP BETWEEN these two variables. This finding corroborates the results of Bahmani-Oskooee and Sohrabian s (1992) conclusion, but contradicts the findings of other studies which reported a long term RELATIONSHIP BETWEEN EXCHANGE RATES and stock prices.
North American Journal of Finance and Banking Research Vol. 4. No. 4. 2010. Gopalan Kutty 1 THE RELATIONSHIP BETWEEN EXCHANGE RATES AND STOCK PRICES: THE CASE OF MEXICO
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