scholarly journals THE EFFECT OF MACROECONOMIC VARIABLES ON CAPITAL MARKET PERFORMANCE: A CASE OF GHANA STOCK EXCHANGE

2020 ◽  
Vol 03 (05) ◽  
pp. 44-54
Author(s):  
David Mensah Awadzie ◽  
David Kwashie Garr
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Macroeconomic Variables ◽  
Ghana Stock Exchange

scholarly journals Capital Market Performance as a Panacea for Economic Growth in Nigeria

2019 ◽  
Vol 13 (2) ◽  
pp. 1
Author(s):  
Akpokerere Othuke Emmanuel ◽  
Okoroyibo Eloho Elizabeth
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Secondary Data ◽  
Least Square ◽  
Ex Post ◽  
Ordinary Least Square Regression ◽  
Market Variables ◽  
The Capital Market

The paper examined capital market performance as a panacea for economic growth in Nigeria from 1986-2016. A number of related literatures have shown that the Nigerian capital market variables studied has satisfactory market performance and has contributed to economic growth. Yet some researchers observed that the capital market has not significantly mobilized and effectively channeled substantial capital to the real sector of the economy. What could have been the reason for the divergences? The study was anchored on the demand following hypothesis. Secondary data were sourced from Central Bank of Nigeria Statistical Bulletin and Nigeria Stock Exchange fact-book of various editions. The paper adopted the ex-post facto research design while ordinary least square regression techniques was used to process the data gathered using E-views 9.0 software. The null hypotheses (Ho) were tested at 5% level of significance. The findings of the paper revealed that there is negative and insignificant relationship between capital market and the variables studied. The paper conclude that liquidity of the capital market is pivotal for economic growth in Nigeria while the study recommended that all tiers of government should be encouraged to fund their realistic long term developmental program through the Nigeria capital market.

scholarly journals Determinants of Share Price of Listed Firms in Ghana

2021 ◽  
Vol 2021 (1) ◽  
pp. 57-71
Author(s):  
Alhassan Musah ◽  
Margaret Aryeetey
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Financial Institution ◽  
Stock Exchange ◽  
Share Price ◽  
Return On Equity ◽  
Macroeconomic Variables ◽  
Listed Firms ◽  
Earnings Per Share ◽  
Ghana Stock Exchange

The price of a company’s share represents investors’ confidence in the future profitability of the company and also used to represent the value of shareholders’ wealth The study examined factors that influence share price of firms listed on the Ghana stock Exchange. The study specifically examined firm specific factors, book ratios and macroeconomic factors that influence share price of listed firms in Ghana. The firm-specific variables include firm size and the firm being a financial institution. The book ratios used in the study include earnings per share, debt ratio, return on assets, return on equity and dividend per share. The macroeconomic variables include economic growth, inflation rate and interest rate. The study sampled 21 firms over a 10-year period, from 2009 to 2018. The study used descriptive statistics, correlation analysis and panel regression analysis to achieve the objectives of the study. The results of the study show that firm-specific variables such as firm size and the firm being financial institution were positive and statistically significant determinants of share price of listed firms in Ghana. The book ratios of debt to asset ratio, return on asset and return on equity were statistically insignificant association with share price of firms listed on the Ghana Stock Exchange. Other book ratios, such as earnings per share and dividend per share, were positively associated and statistically significant with share price of the sampled firms listed on the Ghana Stock Exchange. On the macroeconomic variables, only economic growth was positively associated with share price and statistically significant at 10% significance level. The other variables – inflation and interest rate – were statistically insignificant. The results show that book or investment ratios are the main determinants of share price for firms listed on the Ghana Stock Exchange.

scholarly journals Interest rate, liquidity and stock market performance in Ghana

2016 ◽  
Vol 4 (1) ◽  
pp. 46 ◽  
Author(s):  
Micheal Kofi Boachie ◽  
Isaac Osei Mensah ◽  
Albert Opoku Frimpong ◽  
Martin Ruzima
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Stock Market Index ◽  
Monthly Data ◽  
Market Index ◽  
Stock Market Performance ◽  
M Estimation ◽  
Ghana Stock Exchange

<p>In this study, we examined the effect of interest rate and liquidity growth on stock market performance in Ghana using monthly data from the Ghana Stock Exchange and Bank of Ghana for the period 2010:12 to 2013:11. After employing robust linear regression (M-Estimation), there is a compelling evidence that performance of the Ghanaian stock market is highly influenced by liquidity growth, exchange rate and inflation; and that interest rate effect is insignificant though positive on the stock market index for the period under study.</p>

Macroeconomic Factors and Stock Market Performance in Nepal

2021 ◽  
Vol 14 (1) ◽  
pp. 79-92
Author(s):  
Purna Man Shrestha ◽  
Pitambar Lamichhane
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Stock Market ◽  
Capital Market ◽  
Market Performance ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Market Policy ◽  
Long Run ◽  
Stock Market Performance

This paper examines co-integrating relationship between macroeconomic factors and stock market performance in Nepal using time series data for the period 1987/88 to 2019/20. This study has used Autoregressive Distributed Lag (ARDL) bounds testing approach to identify the co-integrating relationship between macroeconomic variables and stock market performance. The stock market performance is measured by market capitalization which is considered as dependent variable and selected macroeconomic factors such as broad money supply measured by M2, economic growth measured by gross domestic product (GDP) and interest rate measured by 91-days Treasury bill rate are considered as explanatory variables. ARDL bounds test reveals that stock market performance is co-integrated with macroeconomic variables. Similarly, result of this paper shows the significant positive impact of economic growth. Further, finding reports a significant negative effect of broad money supply and interest rate on performance of Nepalese stock market in long-run. Finally, this paper concludes that disequilibrium of stock market performance in short-run is corrected by GDP, M2 and IR in the long-run. The policy implication of this paper is in formulation of capital market policy, monetary policy, financial policy and economic policy. Stock market policy makers should consider macroeconomic variables while formulating capital market policy for the better performance of stock market in Nepal.

scholarly journals KAUSALITAS EKONOMI MAKRO DAN GLOBAL TERHADAP PASAR MODAL INDONESIA

2018 ◽  
Vol 2 (1) ◽  
pp. 66
Author(s):  
R Adisetiawan
Keyword(s):  
Capital Market ◽  
Stock Price ◽  
Stock Exchange ◽  
Composite Index ◽  
Test Statistics ◽  
Causality Test ◽  
Macroeconomic Variables ◽  
Partial Rate ◽  
Close Relationship ◽  
Relationship Of

This study aims to determine causality macroeconomic variables and the influence of the Indonesian capital market during the period 2001-2017 by means of Granger causality test statistics and test of Multiple Linear Regression. The results of this study revealed that during the period 2001-2017 there is a relationship of causality between the money supply (M2) with the Indonesia Stock Exchange composite index, but there is no causal relationship between the BI rate, inflation, the price of crude oil, gold, exchange rate IDR/USD, Dow Jones and Nikkei 225 index on the Indonesia Stock Exchange composite index over the same period. The results of model testing research at 99% confidence level, obtained adjusted R-square values simultaneously at 98.4%, meaning that changes in the macro economy is able to provide a very significant variation in movement patterns of stock price index in Indonesia's capital market. This is also evidenced by the magnitude of the correlation values obtained in the model by 99.3%, meaning that there is a very close relationship between macroeconomic variables of the Indonesian capital market. However, the partial rate of inflation that occurred in Indonesia in the period 2001-2017 did not have a significant influence on the movement of stock market indices of Indonesia. Keywords: JCI, macroeconomic, globalization

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