2018
DOI: 10.1155/2018/7016792
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A Study of the Effect of Inflation and Exchange Rate on Stock Market Returns in Ghana

Abstract: 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 … Show more

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Cited by 64 publications
(64 citation statements)
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“…The study uses annual time series data covering the period 2000 to 2015 and employs GARCH (1, 1) for the estimation. The study reveals a negative relationship between exchange rate volatility and stock market which is consistent with the study by Kwofie and Ansah (2018). Kwofie and Ansah (2018) examine the effect of inflation and exchange rate on stock market returns in Ghana using monthly data from January 2000 to December 2013.…”
Section: Literature Reviewsupporting
confidence: 85%
See 1 more Smart Citation
“…The study uses annual time series data covering the period 2000 to 2015 and employs GARCH (1, 1) for the estimation. The study reveals a negative relationship between exchange rate volatility and stock market which is consistent with the study by Kwofie and Ansah (2018). Kwofie and Ansah (2018) examine the effect of inflation and exchange rate on stock market returns in Ghana using monthly data from January 2000 to December 2013.…”
Section: Literature Reviewsupporting
confidence: 85%
“…The study reveals a negative relationship between exchange rate volatility and stock market which is consistent with the study by Kwofie and Ansah (2018). Kwofie and Ansah (2018) examine the effect of inflation and exchange rate on stock market returns in Ghana using monthly data from January 2000 to December 2013. The results from the autoregressive distributed lag model show that there is a positive relationship between inflation and stock market returns and a negative relationship between exchange rate and stock market returns.…”
Section: Literature Reviewsupporting
confidence: 85%
“…Buying rate, value for purchasing foreign exchange, 4. Flat rate, rate normally used in the traveler check purchase of a or bank note (Fischer, Lieberman, & Adams, 1981) The exchange rate (exchange rate) along with the inflation rate have a longterm relationship with the stock returns (Kwofie & Ansah, 2018). The exchange rate is also the most important indicator of a country's economic growth.…”
Section: Exchange Ratementioning
confidence: 99%
“…In Ghana, some researchers' attempted to examine the association between MVs and stock-price on the Ghana Stock Exchange (GSE). Using the Autoregressive Distributed Lag Model (ARDL) and error correction parameterisation techniques, a significant relationship between MVs (exchange-rate, inflation-rate, and interestrate) and stock returns in Ghana was discovered by (Kwofie and Ansah, 2018). A contrary short-run, decisive long-term, and unidirectional causality from inflation to stocks return in Ghana using VECM were revealed by (Issahaku et al, 2013).…”
Section: Economic Variables and Stock Marketmentioning
confidence: 99%