Monetary variables impact of on the financial index of the stock exchange a case study of the Gulf Cooperation Council countries during the period 2007-2017

Abstract

This study aims to extract the relationship that exists between monetary variables and
stock prices in the Gulf Cooperation Council countries during the period from 2007-2017 by using
the multiple self-regression model of longitudinal data (Panal) and with the help of Eviews9
program to interpret and find the relationship between the share price and a set of monetary and
representative variables In: monetary mass, inflation, interest rate, exchange rate. The study found
that there is a direct, statistically significant relationship between the interest rate and the share
price, and thus it is considered the most influential factor in explaining changes in stock prices in
the Gulf Cooperation Council countries, while inflation, the monetary mass and the exchange rate
do not have any statistical significance and therefore they are not It plays no role in explaining
stock price changes in these countries.