The Effect of Inflation on Capital Market Performance in Ghana (original) (raw)
The securities exchange is a financial organization that encourages investment in the stock of organizations recorded the development and advancement of the economy of a country. The purpose of the study is to investigate the effect of inflation on the stock market performance using data on the Ghana Stock Exchange. The study focused on the impact of inflation rate fluctuation on the stock market performance of the Ghana Stock Exchange. The study used secondary annual time series data for the thirty years from 1990 to 2018. Ordinary least squares (OLS) regression analysis was employed to evaluate the relationship between inflation rate and capital market measures such as market capitalization, the total value of shares, the market volume of shares and market turnover ratio. The result shows the following impact of inflation rate on market performance measures respectively; 24.57%,18.97%,13.34% and 1.71%. The result also revealed a negative relationship between inflation and market p...
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