Electioneering activities and their impact on the Ghana Stock Exchange
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | Electioneering activities and their impact on the Ghana Stock Exchange | |
| Creator | Tetteh, Akyene Arthur, Jeron K. | |
| Description | Orientation: Literature is scanty on the euphoria around Ghana’s electioneering activities and their impact on economic activities.Research purpose: This paper studies electioneering activities and their impact on the Ghana Stock Exchange (GSE) returns.Motivation for the study: Literature have established that political risk is statistically significant in emerging stock markets and from 5 January to 7 December 2016, the GSE lost 23.47% of its trading values. Hence, this paper finds it imperative to examine whether electioneering activities indeed have an impact on GSE.Research approach/design and method: Using daily data span from 5 January 2016 to 7 December, 2016. The autoregressive distributed lag (ARDL) bound test approach to cointegration and Granger causality test was used to examine the data.Main findings: The result suggests that electioneering activity impact negatively on the GSE returns both in the short-run and long-run, but its cause is not clear. It impacts creates arbitrage opportunities for investors and may punish the political party in power.Practical/managerial implications: Political parties in power should recognize that electioneering activities creates a dilemma between regaining power or managing the economy.Contribution/value-add: Ghana’s electioneering activities disproves some investment theories, that is, investors assume risk may not reflect their expected return since the stock market efficiency is nullified by arbitrage opportunity. | |
| Publisher | AOSIS | |
| Date | 2020-08-20 | |
| Identifier | 10.4102/jef.v13i1.447 | |
| Source | Journal of Economic and Financial Sciences; Vol 13, No 1 (2020); 8 pages 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/447/1027
https://jefjournal.org.za/index.php/jef/article/view/447/1026
https://jefjournal.org.za/index.php/jef/article/view/447/1028
https://jefjournal.org.za/index.php/jef/article/view/447/1025
https://jefjournal.org.za/index.php/jef/article/downloadSuppFile/447/432
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