Empirical Analysis of Stock Returns and Volatility of the Zimbabwean Stock Markets

Bonga, Wellington Garikai

doi:10.2139/ssrn.2400088

Cited by 3 publications

(4 citation statements)

References 33 publications

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“…The banking sector should be supported by the stock market existence. Worth noting is that despite the fact that stock markets do not always perform well, their existence and core functions offers benefits to respective societies that are never possible without them (Bonga, 2014). For example, OECD (2012) narrated that stock markets aid in the promotion of corporate governance practices among listed companies.…”

Section: Financial Sector Compositionmentioning

confidence: 99%

A Miniscule Exploration of the Libyan Stock Market

Bonga¹,

Siyakiya²

2022

Saudi J Econ Fin

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The formation of the Libyan Stock Market (LSM) has been greatly affected by instability in the country. The stock market has been active, inactive, active and inactive since its inception in 2006. On the other end, there has been a growing concern and existence of constant pressure to activate the stock market for the benefit of the economy. The factional disagreements and a weak security environment that persist pose heavy challenges for developing and re-activating the stock market. The economic outlook for Libya remains uncertain. It remains difficult to forecast economic outcomes with any degree of confidence because of high uncertainty linked to political and security developments. The times when the stock market was active, significant contribution was brought to the economy, and such has been confirmed by many stakeholders. If re-activated the LSM is expected to play vital role in capital supply for investment, which in turn drive economic development in Libya. For effective contribution, LSM should be established on strong and stable foundations.

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Section: Financial Sector Compositionmentioning

confidence: 99%

A Miniscule Exploration of the Libyan Stock Market

Bonga¹,

Siyakiya²

2022

Saudi J Econ Fin

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“…As a result, organizations are increasingly connecting with the stock exchange to attract investors, fulfilling dual objectives: investors benefit from purchasing stocks while organizations secure investments. The stock exchange serves as a substantial financial instrument, serving various purposes, and enabling the public to participate in activities beneficial for both investors and organizations alike (Bonga, 2014). A stock market is a financial mechanism that enables organizations to fulfill their long-term financing needs by selling stocks or issuing bonds (Hartono, 2022).…”

Section: Introductionmentioning

confidence: 99%

The Role of Behavioral Factors on Investment Decision Making: Moderating Role of Financial Literacy

Butt,

Sajjad,

Awan

et al. 2023

Pak. J. Humanit. Soc. Sci

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The purpose of this paper is to examine the impact of behavioral finance factors on stock market investment behavior. Moreover, it also determines the moderating role of financial literacy in behavioral finance factors and stock investment in Pakistan. Studies have been conducted on Pakistan Stock market investors. Data has been collected through a structured questionnaire. The survey was performed among 165 investors in the Pakistan stock market. SPSS and Smart PLS 3.0 were used to test the hypotheses. The study concluded that Overconfidence, Herding, Loss Aversion, and Risk Perception significantly impacted the performance of Stock Investment decision-making. Moreover, Stock Investment decision-making was also moderated by Financial Literacy except for risk perception. The findings of this study would help to comprehend the behavior of investors in the Pakistan stock market. Moreover, to achieve favorable outcomes, investors must possess financial literacy about the stock market.

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“…In particular, the pandemic severely affected worldwide financial markets (Ali et al 2020;Goodell, 2020;Zhang et al 2020;Gubareva, 2021;Zaremba et al 2021). Stock markets are large financial entities that serve many purposes in their respective economies and the world at large (Bonga, 2014). The COVID-19 period has witnessed the fall of trade, tourism, aviation, and the transport industry, among other sectors.…”

Section: Introductionmentioning

confidence: 99%

“…The rise in concern about extreme events, skewed towards worries about bad or disastrous events, may lead to increasing uncertainty (Bonga, 2019a). A higher degree of uncertainty can cause financial volatility, a measure of dispersion around the mean return of a financial asset (Bonga, 2014). As Bhatia and Gupta (2020) indicate, stock market volatility may be a composite of companies, industries, or the world over information that has been made public.…”

Section: Introductionmentioning

confidence: 99%

Stock Market Volatility in Zimbabwe Stock Exchange During Pandemic Period

Bonga¹

2022

EJEF

Self Cite

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Volatility is essential to consider uncertainty surrounding investments in financial assets. For this reason, financial industry regulators, mutual fund managers, individual and institutional investors, and policymakers are concerned about volatility. Against this background, this paper investigates the volatility of returns on the Zimbabwean stock market between January 2020 and January 2022. We use the All Shares Index for Zimbabwe Stock Exchange (ZSE) for volatility analysis and perform the quantitative investigation using GARCH family models. According to the AIC and SIC criterion, we use the GARCH (1,1) model and perform a complete analysis considering the results obtained from EGARCH (1,1) and IGARCH (1,1) regressions. Results report persistence in volatility, showing that it takes time for the market to digest information into the prices fully, and the shocks to conditional variance take longer to die out. Also, an asymmetry exists, implying that bad news and good news impact differently on the stock market, and the magnitude of volatility due to the good news is higher than bad news. Therefore, we conclude that positive news of the same magnitude impacts more than bad news. Investors rely more on the good news for effective decisions during the pandemic to earn more. Considering the results, any policy aimed at reducing the impact of the pandemic is favorable for investment.

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Empirical Analysis of Stock Returns and Volatility of the Zimbabwean Stock Markets

Cited by 3 publications

References 33 publications

A Miniscule Exploration of the Libyan Stock Market

A Miniscule Exploration of the Libyan Stock Market

The Role of Behavioral Factors on Investment Decision Making: Moderating Role of Financial Literacy

Stock Market Volatility in Zimbabwe Stock Exchange During Pandemic Period

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