A Study of the Effect of Inflation and Exchange Rate on Stock Market Returns in Ghana
Joint Authors
Kwofie, Charles
Ansah, Richard Kwame
Source
International Journal of Mathematics and Mathematical Sciences
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-03-01
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
The study examined the effect of exchange rate and inflation on stock market returns in Ghana using monthly inflation and exchange rate data obtained from the Bank of Ghana and monthly market returns computed from the GSE all-share index from January 2000 to December 2013.
The autoregressive distributed lag (ARDL) cointegration technique and the error correction parametization of the ARDL model were used for examining this effect.
The ARDL and its corresponding error correction model were used in establishing the long- and short-run relationship between the Ghana Stock Exchange (GSE) market returns, inflation, and exchange rate.
The result of the study showed that there exists a significant long-run relationship between GSE market returns and inflation.
However, no significant short-run relationship between them existed.
The result also showed a significant long- and short-run relationship between GSE market returns and exchange rate.
The variables were tested for long memory and it was observed that such property did exist in these variables, making it a desirable feature of which investors can take advantage of.
This is due to the establishment of long-run effect of inflation and exchange rate on stock market returns.
American Psychological Association (APA)
Kwofie, Charles& Ansah, Richard Kwame. 2018. A Study of the Effect of Inflation and Exchange Rate on Stock Market Returns in Ghana. International Journal of Mathematics and Mathematical Sciences،Vol. 2018, no. 2018, pp.1-8.
https://search.emarefa.net/detail/BIM-1173511
Modern Language Association (MLA)
Kwofie, Charles& Ansah, Richard Kwame. A Study of the Effect of Inflation and Exchange Rate on Stock Market Returns in Ghana. International Journal of Mathematics and Mathematical Sciences No. 2018 (2018), pp.1-8.
https://search.emarefa.net/detail/BIM-1173511
American Medical Association (AMA)
Kwofie, Charles& Ansah, Richard Kwame. A Study of the Effect of Inflation and Exchange Rate on Stock Market Returns in Ghana. International Journal of Mathematics and Mathematical Sciences. 2018. Vol. 2018, no. 2018, pp.1-8.
https://search.emarefa.net/detail/BIM-1173511
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1173511