Abstract: The increasing importance of financial assets market makes it necessary to evaluate the related issues of these markets continuously. Thus, the stock exchange is considered as one of the most important components of financial markets. Since, there is a significant relationship between the changes in stock market and the economic depressions and booms, macroeconomic policies, especially monetary policies can affect the stock market indicators drastically. Therefore, the purpose of the current study was to test the hypothesis about the existence of mutual interaction between macroeconomic variables and the stock prices for the period from 1991-2013 using Auto Regressive Distributed Lag (ARDL) approach. The results of the study indicated that the GDP, liquidity stock were statistically significant and had a positive significant effect on the stock prices, while the exchange rate and banking interest rate had a significant negative effect on the stock prices.
Mahnaz Saeedikiya and Nazar Dahmardeh, 2017. The Long Run Interaction Between Macroeconomic Variables and Stock Prices in Iran. International Business Management, 11: 308-314.