Browsing by Author "Sallah, Samuel Senyo"

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    The impact of selected macroeconomic variables on stock return in Ghana.
    (KNUST, 2016-08) Sallah, Samuel Senyo
    The study examines the impact of three macroeconomic variables (Treasury bill rate, Exchange rate and inflation rate) on stock returns, represented by the Ghana Stock Exchange Composite Index, in Ghana. The independent variable were cointegrated so after converting the variable into first difference, Vector Error Correction Model (VECM) was used to analyse the long run and short run estimates of the relationship between the independent variables and the dependent variable. A test of causality and impulse response existing between the variables was done to see if any of the variables granger causes GSE-CI and if shocks in any of the variables contribute to the fluctuations in the GSE-CI. It revealed that there was a negative relationship between the Treasury bill rate and Inflation rate and stock returns whiles there was a positive relationship between the exchange rate and the stock return. Also the kind of causality that exists was unidirectional causality from exchange rate to GSE-CI. Lastly shock in the GSE-CI (own shock) account for the greatest fluctuations in the stock return in Ghana.