Macroeconomic determinants of Singapore's stock market capitalisation / Laila Sofea Azmi

Singapore's stock market capitalization has been quite competitive in the first decade of the 21st century, peaking at 300% of its Gross Domestic Product (GDP) in 2007. It went down to 137.8% the next year as the effect of the 2008 global recession, but Singapore quickly jumped to its feet and its market capitalization yew to 250.1% the very next year. The case sparks the question; what are the attributes that made Singapore's stock market capitalization grow so quickly? Following the question, this research aims to find out the macroeconomic determinants of Singapore's stock market capitalization using annual data in the period between 1979 and 2016. In order to achieve the aims of this study, Multiple Regression Method was used, where the Dependent Variable is Stock Market Capitalization and the Independent Variables are Stock Market Liquidity, Inflation and Financial Intermediary Development. The findings of this research show that Stock Market Liquidity and Financial Intermediary Development have significant positive relationship with Singapore's Stock Market Capitalization. Inflation does not have significant relationship with Singapore's Stock Market Capitalization. The findings in this project could be helpful as a reference to the Singaporean Government and other future researches.