Stock Markets Development in Sub-Saharan Africa: Business Regulations, Governance and Fiscal Policy

Afful, Kofi B.; Asiedu, Kofi Fred

doi:10.5539/ijef.v6n1p15

Cited by 3 publications

(1 citation statement)

References 39 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Despite Asiri and Abdalla (2015) affirm that stock markets provide facilities that allow companies to raise capital at lower cost and make them less dependent on bank financing, the African stock markets do not contribute significantly on financial intermediation. Similarly, Asiedu and Afful (2014) observe that Africa is one of the most Pakistan Journal of Humanities and Social Sciences,6(3), 2018 underdeveloped continents because most of the countries are not likely to meet the UNDP Millennium development goals.…”

Section: Introductionmentioning

confidence: 99%

Poverty Reduction and Stock Market Development: Evidence from Africa

Umar

Nayan

2018

Pak. J. Humanit. Soc. Sci

View full text Add to dashboard Cite

Despite the increased number of stock exchanges in Africa, this segment of the financial market remains underdeveloped with low market capitalization, volume and illiquidity. Furthermore, the aftershock of the 2008 financial crisis exacerbates the poor market condition with the attendant decrease in investment. Efforts of previous policies to promote stock market development and restore investors’ confidence did not yield a positive outcome as they are yet to meet the rising demand for capital needed by domestic firms. This paper examines the relationship between poverty reduction and stock market development in Africa, using the pooled mean group (PMG) model for the sample period of 1996 to 2016. The findings suggest poverty reduction has a positive effect on stock market development both in the long-run and short-run estimates. For policy prescription, the government of the respective countries should implement programs that will promote financial inclusion and alleviate poverty to promote domestic investment in stock markets in the region.

show abstract

Section: Introductionmentioning

confidence: 99%

Poverty Reduction and Stock Market Development: Evidence from Africa

Umar

Nayan

2018

Pak. J. Humanit. Soc. Sci

View full text Add to dashboard Cite

show abstract

The impact of financial regulations on bank lending in emerging economies in Sub-Saharan Africa

Freddy Aliamutu,

Sthembiso Msomi

2024

Banks and Bank Systems

View full text Add to dashboard Cite

The aim of this study is to investigate the impact of financial regulations on bank lending in emerging economies in Sub-Saharan Africa. The dynamic system-generalized method of measures (GMM) is used to address difficulties such as unexplained periods and nation-specific implications, besides the endogeneity of the variables in question. Spanning from 2012 to 2022, the research used data from 80 banks in 20 sub-Saharan African nations. The findings show that expansive financial regulation, which includes a boost in the amount of cash in circulation, induces bank lending. At the same time, restrictive financial regulations, with the value as an improvement in interest rates by central banks, lead to credit contractions, albeit with little impact because of the attainable poverty of banking sectors, organizational limitations, bank-focused attention, and additional system rigidity typical of developing nations, which compromises the efficiency of the system. Other characteristics that substantially impact bank lending routes include capital sufficiency ratios and the scale of economic activity. Sub-Saharan African countries may boost the efficiency of financial regulations propagation on bank lending by making better use of the transfer process of fluctuations in cash supplies and interest rates.

show abstract

Assessment of the Impact of Fiscal Policy Operations on Stock Price Performance: Empirical Evidence from Nigeria

Ogbulu¹,

Torbira²,

Lynda³

2015

International Journal of Financial Research

View full text Add to dashboard Cite

This paper examines the relationship between Government fiscal policy measures and stock prices in Nigeria during the period 1985 -2012. Employing OLS, co-integration, error correction mechanism (ECM), Granger Causality and impulse response and variance decomposition techniques on fiscal policy -stock prices model patterned after a multivariate regression, the study found a significant and negative impact of Public expenditure on stock prices, while Government Domestic Debt Outstanding exerts a significant and positive influence on stock prices. The study also reports a significant and positive relationship between Non-Oil Revenue and stock prices while the two-period and three-period lagged values of broad money supply have significant relationship with stock prices. The Granger causality tests reveal that Stock prices lead changes in Public Expenditure, Domestic Debt and Money Supply respectively while Non-Oil Revenue leads changes in stock prices. The results of both the IRF and VDC analysis reveal that own shocks represent the dominant source of variation in the forecast errors of the variables. The paper therefore recommends that appropriate fiscal policies should be designed and implemented on account of the significant and profound impact of fiscal policies on stock market prices.

show abstract

Stock Markets Development in Sub-Saharan Africa: Business Regulations, Governance and Fiscal Policy

Cited by 3 publications

References 39 publications

Poverty Reduction and Stock Market Development: Evidence from Africa

Poverty Reduction and Stock Market Development: Evidence from Africa

The impact of financial regulations on bank lending in emerging economies in Sub-Saharan Africa

Assessment of the Impact of Fiscal Policy Operations on Stock Price Performance: Empirical Evidence from Nigeria

Contact Info

Product

Resources

About