scholarly journals Effects of Monetary Policy on Stock Market Performance in Africa Evidence from Ten (10) African Countries from 1980 to 2019

2020 ◽  
Vol 09 (03) ◽  
pp. 252-267
Author(s):  
Michael Asiedu ◽  
Emmanuel Owusu Opong ◽  
Orazgylyjova Gulnabat
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Market Performance ◽  
African Countries ◽  
Stock Market Performance

scholarly journals Does Monetary Policy and Foreign Direct Investment Have an Influence on the Performance of Stock Market: Further Empirical Evidence from Ghana

2020 ◽  
Vol 2 (2) ◽  
pp. 161-176
Author(s):  
Opoku Adabor ◽  
Emmanuel Buabeng
Keyword(s):  
Monetary Policy ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Market Performance ◽  
Empirical Literature ◽  
Long Run ◽  
Stock Market Performance ◽  
Short Run ◽  
Positive Effect

Monetary policy, foreign direct investment, and the stock market continue to dominate in discussions in developing countries. However, the linkage between the three variables in empirical literature remains unclear. This study aims to test two separate hypotheses: Firstly, the study examines the effects of monetary policy on stock market performance in Ghana. Secondly, the study also empirically investigates the effect of foreign direct investment on stock market performance in Ghana. Autoregressive Distributed Lag (ARDL) model was employed as an estimation strategy to examine the short and long-run effects using annual time series data from 1990 to 2019. The study revealed that monetary policy rate and money supply exerts a statistically significant negative and a positive effect on stock market performance in both the long and short-run in Ghana, respectively. It was also found that foreign direct investment has significant and a positive effect on stock market performance in Ghana in both the long and short run. Total capital stock and volume traded were also found to exert significant positive and negative impacts on stock market performance both in the short and long run respectively. Based on our findings, we recommend that expansionary monetary policy will be a better option to be carried out to improve the stock market performance in Ghana. Furthermore, government and private partnership may ensure the effective management of the macroeconomic variables to attract foreign direct investment into Ghana to boost stock market performance.

scholarly journals Reconciling Macroeconomic Determinants with Stock Market Performance in Selected Sub-Saharan African Countries: an ARDL Approach

2020 ◽  
Vol 1/2020 (13) ◽  
pp. 23-39
Author(s):  
Kareem Abidemi Arikewuyo ◽  
◽  
Akeem Adekunle Adeyemi ◽  
Eunice Titilayo Omodara ◽  
Lateef Adewale Yunusa ◽  
...  
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Stock Price ◽  
Market Performance ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Macroeconomic Factors ◽  
Stock Market Performance ◽  
Sub Saharan ◽  
Macroeconomic Determinants

Prior studies have adduced unstable macroeconomic factors to stock price movement overtime but the relationship between the duo remained unsettled. Autoregressive Distributed Lag (ARDL) technique was used to reconcile the macroeconomic determinants with performance of stock markets in selected Sub-Saharan Africa (SSA) covering the period of 1999:1–2017:4. It was found that macroeconomic indicators were essential in determining stock market performance in Nigeria while South African stock market did not show any predictable linkage but the contemporaneous effect of oil price changes on stock market performance in selected SSA. The study, therefore, recommended that countries in SSA should reduce overdependence on oil to minimize external influence in order to promote stability of the stock markets.

scholarly journals Political Regimes and Stock Market Performance in Africa

2016 ◽  
Vol 16 (3) ◽  
pp. 240-249 ◽  
Author(s):  
Simplice A Asongu ◽  
Jacinta C Nwachukwu
Keyword(s):  
Stock Market ◽  
Political Institutions ◽  
Market Performance ◽  
Press Freedom ◽  
Market Development ◽  
Political Regime ◽  
African Countries ◽  
Stock Market Development ◽  
Legal Origins ◽  
Stock Market Performance

This article assesses the effect of political institutions on stock market performance in 14 African countries for which stock market data are available for the period 1990–2010. The estimation technique used is a two-stage least-squares instrumental variable methodology. Political regime channels of democracy, polity and autocracy are instrumented with legal-origins, religious-legacies, income-levels and press-freedom qualities to account for stock market performance dynamics of capitalisation, value traded, turnover and number of listed companies. The findings show that countries with democratic regimes enjoy higher levels of financial market development compared to their counterparts with autocratic inclinations. As a policy implication, the role of sound political institutions has important effects on both the degree of competition for public office and the quality of public offices that favour stock market development on the African continent.

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