Stock Prices Reaction to Dividend Announcements in Ghana: An Empirical Investigations of Banks Listed on the Ghana Stock Exchange

The paper assesses the effect of interest rate on stock prices, with emphases on Ghana Stock Exchange; using monthly time series data from July 2007 to December 2019. The Augmented Dickey-Fuller (ADF) test was employed to establish the stationarity properties of the data or otherwise. Using the Ordinary Least Squares (OLS) estimation technique of Multiple Regression, the results (? = – 0.891, p < 0.05) revealed an indirect association between interest rates and stock prices in the Ghanaian context; which is consistent with the theoretical conclusion that an increase in interest rate results in a decrease in stock prices. Thus, in the light of this finding, it was recommended that policymakers should consider the stock market dynamics due to the significant relationship that exists between the two macroeconomic variables.

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Jump Diffusion Modeling of Stock Prices on Ghana Stock Exchange

Journal of Applied Mathematics and Physics ◽

10.4236/jamp.2020.89131 ◽

2020 ◽

Vol 08 (09) ◽

pp. 1736-1754

Author(s):

Osei Antwi ◽

Kyere Bright ◽

Kwasi Awuah Wereko

Keyword(s):

Stock Prices ◽

Stock Exchange ◽

Jump Diffusion ◽

Diffusion Modeling ◽

Ghana Stock Exchange

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Stock Returns and Long-range Dependence

Global Business Review ◽

10.1177/0972150919866966 ◽

2019 ◽

pp. 097215091986696

Author(s):

Alexander Ayertey Odonkor ◽

Emmanuel Nkrumah Ababio ◽

Emmanuel Amoah- Darkwah ◽

Richard Andoh

Keyword(s):

Stock Returns ◽

Stock Prices ◽

Long Memory ◽

Stock Exchange ◽

Moving Average ◽

Efficient Market Hypothesis ◽

Conditional Heteroskedasticity ◽

Relevant Market ◽

Figarch Model ◽

Ghana Stock Exchange

This article studies the long memory behaviour of stock returns on the Ghana Stock Exchange. The estimates employed are based on the daily closing prices of seven stocks on the Ghana Stock Exchange. The results of the autoregressive fractionally integrated moving average-fractionally integrated generalized autoregressive conditional heteroskedasticity (ARFIMA-FIGARCH) model suggest that the stock returns are characterized by a predictable component; this demonstrates a complete departure from the efficient market hypothesis suggesting that relevant market information was only partially reflected in the changes in stock prices. This pattern of time dependence in stock returns may allow for past information to be used to improve the predictability of future returns.

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Impact of Dividend Announcements on Stock Prices of UK Firms Listed in London Stock Exchange

GIS Business ◽

10.26643/gis.v13i4.3271 ◽

2018 ◽

Vol 13 (4) ◽

pp. 1-10

Author(s):

Emeka Henry Alaeto

Keyword(s):

Event Study ◽

Stock Prices ◽

Stock Price ◽

Stock Exchange ◽

London Stock Exchange ◽

Share Prices ◽

Dividend Announcements ◽

Study Methodology ◽

Dividend Irrelevance ◽

Event Study Methodology

The aim of this paper is to explore the possible relationship between dividend announcement and stock price reactions upon announcements by the quoted firms in London Stock Exchange (LSE). For the sake of this study, an event-study methodology was employed to calculate any abnormal or excess returns around dividend announcements for 100 firms listed in the LSE over a period of 5 years (2010-2014). The result of the event study indicates that dividend announcements do not convey information to investors (Khan, 2011). The researcher concludes by saying that dividend announcements do not convey any information to share prices, which is in consonance with the M-M Dividend Irrelevance Theory.

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Liquidity Reactions Towards Dividend Announcements and Information Efficiency on the Ghana Stock Exchange

SSRN Electronic Journal ◽

10.2139/ssrn.2987926 ◽

2017 ◽

Author(s):

Evans Tee

Keyword(s):

Stock Exchange ◽

Information Efficiency ◽

Dividend Announcements ◽

Ghana Stock Exchange

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Cointegration of Stock Prices and Domestic Portfolio Diversification Opportunities: Evidence from the Ghana Stock Exchange

Applied Economics and Finance ◽

10.11114/aef.v4i5.2475 ◽

2017 ◽

Vol 4 (5) ◽

pp. 78

Author(s):

George Amfo-Antiri ◽

Edward Quansah

Keyword(s):

Stock Returns ◽

Stock Prices ◽

Stock Exchange ◽

Composite Index ◽

Cointegration Analysis ◽

Portfolio Diversification ◽

Individual Investors ◽

Long Run ◽

Ghana Stock Exchange ◽

Bound Test

This paper employed Engle-Granger test of cointegration and the Bound Test to explore potential domestic portfolio diversification opportunities that are available for individual investors, institutional and other portfolio managers from constructing domestic portfolios. Daily stock prices for the period 1st August, 2011 to July 29th, 2016 have been employed as well as monthly stock return from the Ghana Stock exchange. The result from the cointegration analysis indicated that most equity stocks listed on the Ghana Stock Exchange are not cointegrated with each other in the long run. In addition, majority of the stock returns are statistically insensitive to the GSE– Composite index during the period under consideration. The empirical evidence indicates that domestic investors can benefit from constructing portfolios that consist of equities from the financial sector and other non-financial sectors which are not cointegrated.

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Firm-specific determinants of stock prices in an emerging capital market: Evidence from Ghana Stock Exchange

Cogent Economics & Finance ◽

10.1080/23322039.2017.1339385 ◽

2017 ◽

Vol 5 (1) ◽

pp. 1339385 ◽

Cited By ~ 2

Author(s):

Felix Kwame Aveh ◽

Dadson Awunyo-Vitor ◽

David McMillan

Keyword(s):

Capital Market ◽

Stock Prices ◽

Stock Exchange ◽

Ghana Stock Exchange

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Kwame Nkrumah University of Science and Technology

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v8i4.702 ◽

2010 ◽

Vol 8 (4) ◽

Author(s):

Gordon Newlove Asamoah

Keyword(s):

Stock Exchange ◽

Efficient Market Hypothesis ◽

Matched Pair ◽

Specific Information ◽

Font Size ◽

Share Prices ◽

Kwame Nkrumah ◽

Dividend Announcements ◽

Ghana Stock Exchange ◽

Available Information

The Efficient Market Hypothesis (EMH) provides that security prices reflect all available information. However, despite dividend announcements made in 2005, three companies selected for study performed badly on Ghana Stock Exchange (GSE).  The problem of the study was therefore to establish whether the GSE did not recognize company-specific information in pricing shares.  The purpose of the study was to ascertain whether there was an instantaneous reaction of the companies’ share prices to dividend announcement in order to provide the basis for confirming or dispelling the EMH conclusions as far as the Ghana Stock Exchange was concerned.  The event study methodology was used to achieve the research objective. Additionally, the Wilcoxon Matched-Pair signed-Ranked Test was employed in testing the null hypothesis.  The major finding was that the GSE was not semi-strong efficient resulting in the conclusion that the GSE must address itself to three forms of efficiency – operational efficiency, allocation efficiency and pricing efficiency.

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