The Impact of Uncertain Welfare Quality on Equity Market Performance
Welfare quality is usually a stochastic outcome, as attempts at improving social welfare cannot be predicted in advance. The advances in stock market participation conclude that equity market performance is able to reflect investors’ mass reactions and therefore can fairly reflect the empiricism of...
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| Format: | Article |
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MDPI AG
2025-04-01
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| Series: | International Journal of Financial Studies |
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| Online Access: | https://www.mdpi.com/2227-7072/13/2/67 |
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| author | Tarek Eldomiaty Islam Azzam Hoda El Kolaly Nermeen Youssef Marwa Anwar Sedik Rehab ElShahawy |
| author_facet | Tarek Eldomiaty Islam Azzam Hoda El Kolaly Nermeen Youssef Marwa Anwar Sedik Rehab ElShahawy |
| author_sort | Tarek Eldomiaty |
| collection | DOAJ |
| description | Welfare quality is usually a stochastic outcome, as attempts at improving social welfare cannot be predicted in advance. The advances in stock market participation conclude that equity market performance is able to reflect investors’ mass reactions and therefore can fairly reflect the empiricism of welfare quality. In this paper, the pillars of the Happy Planet Index (<i>hereinafter</i> HPI) are used as proxies for countries’ welfare quality. The data cover 57 countries where equity markets exist over the annual period of 2006–2020. The results indicate that (a) the three pillars of HPIs have historical positive impacts on market capitalization and stock turnover; (b) stochastically, life satisfaction has an expected positive impact on market capitalization and stock turnover; (c) firms located in high (low) HPIs, life satisfaction, and life expectancy have significant (insignificant) stochastic impacts on market capitalization; and (d) the historical ecological footprints have positive impacts on market capitalization and stock turnover, whereas stochastic impacts are statistically insignificant. |
| format | Article |
| id | doaj-art-1a521c4eeec34f5c8ef17674bbf2899c |
| institution | Kabale University |
| issn | 2227-7072 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| spelling | doaj-art-1a521c4eeec34f5c8ef17674bbf2899c2025-08-20T03:27:07ZengMDPI AGInternational Journal of Financial Studies2227-70722025-04-011326710.3390/ijfs13020067The Impact of Uncertain Welfare Quality on Equity Market PerformanceTarek Eldomiaty0Islam Azzam1Hoda El Kolaly2Nermeen Youssef3Marwa Anwar Sedik4Rehab ElShahawy5Onsi Sawiris School of Business, The American University in Cairo, AUC Avenue, P.O. Box 74, New Cairo 11835, EgyptOnsi Sawiris School of Business, The American University in Cairo, AUC Avenue, P.O. Box 74, New Cairo 11835, EgyptOnsi Sawiris School of Business, The American University in Cairo, AUC Avenue, P.O. Box 74, New Cairo 11835, EgyptFaculty of Business, Economics and Political Science, The British University in Egypt, P.O. Box 43, Cairo 11837, EgyptFaculty of Business Administration & International Trade, Misr International University, Al Obour 19648, EgyptSchool of Business Administration, Canadian International College in Cairo, CIC Avenue, P.O. Box 59, New Cairo 11241, EgyptWelfare quality is usually a stochastic outcome, as attempts at improving social welfare cannot be predicted in advance. The advances in stock market participation conclude that equity market performance is able to reflect investors’ mass reactions and therefore can fairly reflect the empiricism of welfare quality. In this paper, the pillars of the Happy Planet Index (<i>hereinafter</i> HPI) are used as proxies for countries’ welfare quality. The data cover 57 countries where equity markets exist over the annual period of 2006–2020. The results indicate that (a) the three pillars of HPIs have historical positive impacts on market capitalization and stock turnover; (b) stochastically, life satisfaction has an expected positive impact on market capitalization and stock turnover; (c) firms located in high (low) HPIs, life satisfaction, and life expectancy have significant (insignificant) stochastic impacts on market capitalization; and (d) the historical ecological footprints have positive impacts on market capitalization and stock turnover, whereas stochastic impacts are statistically insignificant.https://www.mdpi.com/2227-7072/13/2/67welfare qualitystochastichappy plant indexequity market performanceworld economies |
| spellingShingle | Tarek Eldomiaty Islam Azzam Hoda El Kolaly Nermeen Youssef Marwa Anwar Sedik Rehab ElShahawy The Impact of Uncertain Welfare Quality on Equity Market Performance International Journal of Financial Studies welfare quality stochastic happy plant index equity market performance world economies |
| title | The Impact of Uncertain Welfare Quality on Equity Market Performance |
| title_full | The Impact of Uncertain Welfare Quality on Equity Market Performance |
| title_fullStr | The Impact of Uncertain Welfare Quality on Equity Market Performance |
| title_full_unstemmed | The Impact of Uncertain Welfare Quality on Equity Market Performance |
| title_short | The Impact of Uncertain Welfare Quality on Equity Market Performance |
| title_sort | impact of uncertain welfare quality on equity market performance |
| topic | welfare quality stochastic happy plant index equity market performance world economies |
| url | https://www.mdpi.com/2227-7072/13/2/67 |
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