Assessing the Impact of Business Cycles on Stock Market Uncertainty in Developed and Less Developed Countries

 The purpose of this article is to investigate the effect of stagnation and boom business cycles on stock market uncertainty in 31 developed and less developed countries.Developed in the period 18-2001. The uncertainty model was determined experimentally by meta-analysis method and was estimated using the balanced data panel technique in two modes of recession cycle and boom cycle. The results showed that in both groups of countries, recession cycles increase stock market uncertainty and are as expected, but boom cycles increase stock market uncertainty and are contrary to expectations. Other results showed that in both cases of recession cycle and bank-based financial development boom cycle, market-based financial development increases, nominal interest rate variable increases and technical progress variable reduces stock market uncertainty. However, the average tax rate decreases during boom business cycles and increases in stock markets during recessionary business cycles.