Economic Policy Uncertainty and Stock Returns of Africa: A Wavelet Coherence Analysis
Joint Authors
Asafo-Adjei, Emmanuel
Agyapong, Daniel
Agyei, Samuel Kwaku
Frimpong, Siaw
Djimatey, Reginald
Adam, Anokye M.
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-11-23
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
This study explores how global economic policy uncertainty (EPU) shocks comove with stock returns (SR) of eight African countries—Botswana, Ghana, Kenya, Morocco, Namibia, Nigeria, South Africa, and Zambia.
The study employed daily data from December 2010 to December 2019 using wavelet coherence analysis.
The results showed that global EPU comoves with most of the SR of African markets and was concentrated in the longer term, especially during the period between 2011 and 2019, although not substantially.
The findings indicate that short-term investments in African stocks are less susceptible to global economic policy uncertainty.
It is recommended that foreign investors could hedge agaist policy uncertainties by investing in stock listed in African Stock exchanges while appropriate country-level policies are deployed to manage long-term effect of EPU.
American Psychological Association (APA)
Asafo-Adjei, Emmanuel& Agyapong, Daniel& Agyei, Samuel Kwaku& Frimpong, Siaw& Djimatey, Reginald& Adam, Anokye M.. 2020. Economic Policy Uncertainty and Stock Returns of Africa: A Wavelet Coherence Analysis. Discrete Dynamics in Nature and Society،Vol. 2020, no. 2020, pp.1-8.
https://search.emarefa.net/detail/BIM-1153549
Modern Language Association (MLA)
Asafo-Adjei, Emmanuel…[et al.]. Economic Policy Uncertainty and Stock Returns of Africa: A Wavelet Coherence Analysis. Discrete Dynamics in Nature and Society No. 2020 (2020), pp.1-8.
https://search.emarefa.net/detail/BIM-1153549
American Medical Association (AMA)
Asafo-Adjei, Emmanuel& Agyapong, Daniel& Agyei, Samuel Kwaku& Frimpong, Siaw& Djimatey, Reginald& Adam, Anokye M.. Economic Policy Uncertainty and Stock Returns of Africa: A Wavelet Coherence Analysis. Discrete Dynamics in Nature and Society. 2020. Vol. 2020, no. 2020, pp.1-8.
https://search.emarefa.net/detail/BIM-1153549
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1153549