Boom-bust cycles and their fundamental determinants: an empirical evidence of the Tunisian stock market

The occurrence of boom-bust cycles in emerging and developed markets has brought new attention to the linkages between macroeconomic environment and stock market cycles. This paper has identified stock market boom-bust cycles in Tunisia since 1992. Our main objective is to investigate the determinants of stock market booms and busts occurrence using the ordered logit model. Empirical evidence from quarterly data on the real BVMT index shows that the monetary and financial indicators and behaviour of investors have played a key role in explaining Tunisian stock market boom-bust cycles.