Quantitative relationship between corruption and development of the Tunisian stock market

  • Received June 30, 2018;
    Accepted September 24, 2018;
    Published September 28, 2018
  • Author(s)
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  • Article Info
    Volume 7 2018, Issue #2, pp. 39-47
  • Cited by
    7 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

The aim of this article is to seek especially the impact of corruption on the bond and stock market development. For the methodology/approach, the authors analyze a sample of 20 listed Tunisian firms from the Stock Exchange and Financial market, covering the period from 2006 to 2016 by using pooling cross section techniques. The results find a significant positive effect of the level of corruption on the stock market index and the logarithm of capitalization. This is consistent with the view that corruption accelerates the economic growth by speeding up transactions and allowing private companies to overcome the inefficiencies imposed by the government. Furthermore, the results find a negative association is not significant with the dependent variable of traded value as a percentage of the number of listed companies.

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    • Table 1. Definition of model variables
    • Table 2. Variable descriptive statistics
    • Table 3. Variable seemingly unrelated regression (three columns of MCO regression)