The impact of NYSE market index growth on investors’ trading volume

Main Article Content

Wee Win Yeoh


Investors’ behaviour tends to be affected by various factors, including the shift in the market index growth. Thus far, there is no concrete evidence that support the association between market index growth and trading volume growth. This study therefore tested the relationship between these two variables in a longitudinal study involving market data that covers a period of 20 years. The existing literatures have provided support that a significant, positive association exists between market index growth and trading volume in the NYSE market. The result, however, does not support this notion. Instead, the relationship between market index growth and trading volume was found to be significantly negative.

Article Details

How to Cite
Yeoh, W. W. (2023). The impact of NYSE market index growth on investors’ trading volume. Issues and Perspectives in Business and Social Sciences, 3(1), 19 –.
Research papers


Al-Ajmi, A. (2017). Trading volume and volatility in the Boursa Kuwait, The British Accounting Review, 10(2017), 1–15.

Apuke, O.D. (2017). Quantitative Research Methods A Synopsis Approach, Arabian Journal of Business and Management Review, 6(11), 40–47.

Batrinca, B., Hesse, C.W. & Treleaven, P.C. (2018). Examining drivers of trading volume in European markets, International Journal of Finance & Economics, 23(2), 134–154.

Chiah, M. & Zhong, A. (2020). Trading from home: The impact of COVID-19 on trading volume around the world, Finance Research Letters, 37(2020), 101784.

Choi, H.M. (2019). ‘Market uncertainty and trading volume around earnings announcements’, Finance Research Letters, 30(2019), 14–22.

Cooper, D. & Schindler, P. (2014). Business Research Methods (12th ed), McGraw-Hill/Irwin.

He, F., Chen, B., Meng, X., Xiong, X. & Zhang, W. (2020). Price discovery and spill over dynamics in the Chinese stock index futures market: a natural experiment on trading volume restriction, Quantitative Finance, 20(12), 2067–2083.

Iqbal, H. & Riaz, T. (2015). The empirical relationship between stocks returns, trading volume and volatility: Evidence from stock market of United Kingdom, Research Journal of Finance and Accounting, 6(13), pp. 180–192.

Sekaran, U. & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). Wiley.

Sharela, B.F. (2016). Qualitative and quantitative case study research method on social science: Accounting perspective, International Journal of Economics and Management Engineering, 10(12), 3849–3854.

Sheta, A.F., Ahmed, S.E.M. & Faris, H. (2015). A Comparison between regression, artificial neural networks and support vector machines for predicting stock market index’, International Journal of Advanced Research in Artificial Intelligence, 4(7), 55–63.

Souza, H.E.D., Barbedo, C.H.D.S. & Araujo, G.S. (2018). Does investor attention affect trading volume in the Brazilian stock market? Research in International Business and Finance, 44 (2018), 480–487.

Tapa, A. & Hussin, M. (2016). The relationship between stock return and trading volume in Malaysian ACE Market, International Journal of Economics and Financial Issues, 6(7), 271–278.

Widyarti, E.T., Wahyudi, S. & Hersugondo, H. (2021). Map of changes in abnormal return and trading volume activity: Reviewing the effect of Ramadhan in Indonesia, Universal Journal of Accounting and Finance, 9(5), 1093–1102.