FINANCIAL SECTOR LIBERALIZATION AND ITS INFLUENCE ON STOCK PRICE STABILITY
Keywords:
financial liberalization, stock market, stock price stability, capital flow, banking systemAbstract
This paper examines the impact of financial sector liberalization on stock price stability. Financial liberalization enhances competition among banks and financial institutions, increases capital flows, and improves the investment climate. However, this process may also lead to unintended consequences, such as heightened stock price volatility or market instability. Through an analysis of existing academic literature and empirical data, this study explores the effects of financial sector liberalization on the stability of stock prices.
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References
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