The Performance of African Stock Markets Before and After the Global Financial Crisis

Seck, Diery

doi:10.1007/978-3-319-44787-2_1

Cited by 4 publications

(6 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As noted by Carrière-Swallow and Céspedes [8], there is substantial heterogeneity in reactions to these shocks across countries, and emerging economies suffer more and take longer to recover. The reaction of African stock markets and the inability of most markets to return to pre-GFC is a confirmation of the difficulty in overshoot activities following uncertainty [8,9].…”

Section: Introductionmentioning

confidence: 97%

“…African stock markets have long been seen as prime candidates for inclusion in the portfolio of international investors seeking international diversification [9,19]. However, the emergence of Africa as a destination for foreign investment from across the globe is gradually integrating African stock markets into the world, making them susceptible to global uncertainty [9,19,20]. In particular, African stocks, for example, recorded the sharpest decline relative to other regional markets in their returns during the 2008/2009 financial crisis [9].…”

Section: Introductionmentioning

confidence: 99%

“…However, the emergence of Africa as a destination for foreign investment from across the globe is gradually integrating African stock markets into the world, making them susceptible to global uncertainty [9,19,20]. In particular, African stocks, for example, recorded the sharpest decline relative to other regional markets in their returns during the 2008/2009 financial crisis [9]. The ability of African stock markets to respond to global pressures such as economic policy uncertainty depends on adaptive capabilities and innovativeness.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Susceptibility of Stock Market Returns to International Economic Policy: Evidence from Effective Transfer Entropy of Africa with the Implication for Open Innovation

Adam

2020

Journal of Open Innovation: Technology, Market, and Complexity

View full text Add to dashboard Cite

This study contributes to the scant finance literature on information flow from international economic policy uncertainty to emerging stock markets in Africa, using daily US economic policy uncertainty as a proxy and the daily stock market index for Botswana, Egypt, Ghana, Kenya, Morocco, Nigeria, Namibia, South Africa, and Zambia from 31 December 2010 to 27 May 2020, using the Rényi effective transfer entropy. International economic policy uncertainty transmits significant information to Egypt, Ghana, Morocco, Namibia, and South Africa, and insignificant information to Botswana, Kenya, Nigeria, and Zambia. The asymmetry in the information transfer tends to make the African market an alternative for the diversification of international portfolios when the uncertainty of the global economic policy is on the rise. The findings also have implications for the adoption of open innovation in African stock markets.

show abstract

Section: Introductionmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Susceptibility of Stock Market Returns to International Economic Policy: Evidence from Effective Transfer Entropy of Africa with the Implication for Open Innovation

Adam

2020

Journal of Open Innovation: Technology, Market, and Complexity

View full text Add to dashboard Cite

show abstract

“…The previous literature supports the finding of this study that the global financial crisis leads to a decline in foreign investment in Africa. For example, Seck and Yoff (2016) state that the African stock markets would have been the best investment destination prior to the global financial crisis that causes a devastating effect on their development.…”

Section: Discussion Of Resultsmentioning

confidence: 99%

The Effects of Life Expectancy and Financial Crisis on the Stock Market Development in Africa

Umar

Nayan

2019

Global Business Review

View full text Add to dashboard Cite

The African stock market remains underdeveloped despite the increased number of stock exchanges in the region characterized by low market capitalization, volume and illiquidity. The efforts of the previous policies to promote stock market development and restore investors’ confidence in the region did not yield a positive outcome, as they are yet to meet the rising demand for capital by domestic firms. This article investigates the effects of life expectancy and financial crisis on the stock market development in Africa, using the pooled mean group (PMG) model for the sample period of 1996–2016. The findings reveal a positive and statistically significant long-run relationship between the life expectancy and stock market development. Furthermore, the financial crisis adversely affects the stock market development with an attendant decrease in investment. There is a need for policies that address infant mortality, encourage long-term investment and protect the African stock market against an adverse reaction of the financial crisis.

show abstract

“…Principally US economy as at January 2018 had recovered and bailout funds advanced in 2014 recovered by the Government (NBER 2019). Seck (2017) during financial crisis 2008 to 2015 stock markets in Africa continent financial performance weakened in terms average returns. Recovery to their pre-crisis index (2000 -2007) has not yet taken place fully due to slow recovery process.…”

Section: Background To the Studymentioning

confidence: 99%

Executive Reward Structure and Financial Performance of Listed Companies in the Nairobi Securities Exchange, Kenya

Nzunga

2022

JOFA

View full text Add to dashboard Cite

Studies have reported positive and significant relationship,that is, positive relationship between executive fixed pay, cash bonus, stock options and company’s financial performance; others negative and significant relationship, while others no significant relationship. In view of4this, the4 study4 sought4 to4 establish4 the4 relationship4 between4 executive4 reward4 structure4 and4 financial4 performance4 of4 listed4 companies4 at4 the4 Nairobi4 Securities4Exchange, Kenya. The investigation's precise goals were to establish the impact of executive base pay, bonuses, and non-cash incentives, as well as executive7 stock7options, on7 the7 financial7 performance7 of7 firms7listed7 on7the Nairobi Securities7Exchange7in7Kenya.The research also determined if the rate of inflation had a moderating influence on the association between CEO compensation and financial performance of Nairobi securities exchange-listed businesses. Stakeholder theory, agency theory, marginal productivity theory, and managerial power and governance theory were all used in this research. In this study, the positivist philosophy was applied, as well as a causal research design. The target population was all 65 listed businesses on the Nairobi Securities Exchange in Kenya, and a census was conducted. The research employed panel secondary data from annual financial statements of NSE-listed businesses. The study finding indicated that all the study variables except for inflation had a positive correlation with with financial performance of listed firms. However it is basic pay, bonuses and non cash benefits that had a positive and significant effect on the financial performance of listed firms. The effect of executive share options was positive but insignificant at 5% level of significance. Equally the effect of inflation was negative but insignificant. However, inflation has a signinificant effect as a moderator in the relationship7 between7 executive7 rewards7 and7 financial7 performance7 of7 listed7 firms7 at7 the7 Nairobi7 Securities7Exchange.Its is on the basis on of this findings that the study recommends that listed firms need to tailor their executive compensation and reward schemes to performance to encourage the top executives to continuous work hard and achieve their performance targets. Keywords: Executive reward structure, executive basic salary, executive bonuses, executive non-cash benefits, executive stock options, inflation rate, financial performance.

show abstract

The Performance of African Stock Markets Before and After the Global Financial Crisis

Cited by 4 publications

References 19 publications

Susceptibility of Stock Market Returns to International Economic Policy: Evidence from Effective Transfer Entropy of Africa with the Implication for Open Innovation

Susceptibility of Stock Market Returns to International Economic Policy: Evidence from Effective Transfer Entropy of Africa with the Implication for Open Innovation

The Effects of Life Expectancy and Financial Crisis on the Stock Market Development in Africa

Executive Reward Structure and Financial Performance of Listed Companies in the Nairobi Securities Exchange, Kenya

Contact Info

Product

Resources

About