Dependent Variables | ||||||||||||
Call Bid-Ask Spread | (29) | |||||||||||
Put Bid-Ask Spread | (30) | (31) | ||||||||||
Volume | ||||||||||||
Open Interest | (32) | |||||||||||
Implied Volatility | (33) | (34) | ||||||||||
Independent Variables | ||||||||||||
Log (GDP) | −9.83e−11 | 7,377,928** | 1.14e+10** | 1.53e−13 | ||||||||
(2.61e−11) | (3.36) | (0.92) | (7.13e−140) | |||||||||
GDP per capita | −0.0042462 | 0.0011669 | −7524.3 | −0.0000109 | ||||||||
(0.0016153) | (0.0027849) | (51,259.72) | (5.08e−06) | |||||||||
Unemployment (%) | −0.0000473 | −0.0000177 | −5,374,268 | −0.0184* | ||||||||
(−1,371,091) | (6,440,153) | (9.27e+07) | (−1.90) | |||||||||
Log (Population) | 288,594 | 5,174,138** | 1.63e+08* | 0.0136387 | ||||||||
(−0.0000473) | (−0.0000177) | (−5,374,268) | (−2.33e−08) | |||||||||
Public Debt % Of GDP | 0.0812835 | −149,493 | 2,098,343 | −0.0026365 | ||||||||
(0.2777827) | (0.5513241) | (1.54e+07) | (0.0015976) | |||||||||
Bank Capital to Assets Ratio (%) | 1,441,537 | −168,478 | −3.88e+08 | −0.039154*** | ||||||||
(7,385,669) | (8,585,465) | (3.14e+08) | (0.0255095) | |||||||||
Inflation (%) | −5,227,663 | 5,366,343 | 1.48e+08 | −0.009728 | ||||||||
(2,499,113) | (3,934,968) | (1.32e+08) | (0.0116139) | |||||||||
Economic Freedom | 0.2417237 | 3,952,484*** | 3.17e+07* | 0.0056449 | ||||||||
(0.7376049) | (0.8598988) | (2.95e+07) | (0.0032589) | |||||||||
Interest Rates (Gov Bonds) 10 Year | −2,242,687 | −1,758,032 | 1.99e+08 | 0.0423153* | ||||||||
(7,791,506) | (1,573,075) | (4.69e+08) | (0.0390141) | |||||||||
Freedom from Corruption | −2357458** | −1,280,415*** | −2.40e+07* | −0.0084223 | ||||||||
(5,197,108) | (7,280,564) | (1.48e+08) | (0.0155655) | |||||||||
Fiscal Freedom | −1,687,506 | 2,933,173*** | 1.71e+08* | 0.0299604* | ||||||||
(5,969,377) | (1,184,746) | (2.77e+08) | (0.0323083) | |||||||||
Business Freedom | −0.7738089 | −8,226,478** | −7.44e+07* | −0.0107303*** | ||||||||
(1,282,749) | (272,878) | (6.25e+07) | (0.0063113) | |||||||||
Investment Freedom | 1,111,043 | −4,123,394 | −2.44e+07 | −0.0018179 | ||||||||
(1,386,519) | (2,016,895) | (7.47e+07) | (0.0053503) | |||||||||
Income Tax Rate (%) | 1,909,797*** | 2,657,176** | 1.62e+08* | 0.0362286 | ||||||||
(8,425,393) | (1,254,226) | (3.27e+08) | (0.0389402) | |||||||||
Corporate Tax Rate (%) | 7,529,284 | 1,248,394 | −2.67e+08 | −0.1695433* | ||||||||
(2,273,524) | (300,873) | (9.81e+08) | (0.0677029) | |||||||||
Financial Freedom | 6,548,763 | 1,801,701 | −6.12e+09 | −0.2027718 | ||||||||
(6,361,956) | (7,631,008) | (1.99e+09) | (0.168976) | |||||||||
Market Capitalization of Listed Domestic Companies | 1.45e−11 | 2.00e−11 | 0.0003289 | 1.49e−14 | ||||||||
(2.14e−11) | (2.14e−11) | (0.0004678) | (2.92e−14) | |||||||||
S&P Global Equity Indices (Annual % Change) | −0.7347998 | −0.9809123 | −6693247** | 0.0000979* | ||||||||
(0.0939463) | (0.1781333) | (3,493,916) | 0.0006** | (0.0003421) | ||||||||
Stocks Traded, Turnover Ratio of Domestic Shares (%) | 9.63e−11** | 4.39e−11*** | −0.0013783* | (2.34) | −1.60e−13* | |||||||
(5.40e−11) | (5.88e−11) | (0.0016434) | (1.99e−13) | |||||||||
Stocks Traded, Total Value | −0.4808714 | −0.171*** | 0.1251975*** | 7,508,647* | 0.0009984* | |||||||
(0.3056932) | (−5.21) | (0.3387303) | (1.05e+07) | (0.0011633) | ||||||||
Constant | −44,955.63** | 2,557,756*** | −1941.44 | 4.49e+11*** | 0.3100664 *** | 9,649,115 | ||||||
(4,598,113) | (878,505) | (5,382,439) | (1.41e+11) | (0.0017345) | (1,135,567) | |||||||