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Management Of Stock Price And Its Effect On Economic Growth: Case Study Of West African Financial Markets

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  • Drama Bedi Guy HERVE
  • Yao SHEN

Abstract

This paper investigates the statistical properties of stock returns in the West African regional stock market and the link between the West African regional stock market and economic growth. To examine the nature of the distribution of West African regional stock returns, the daily closing prices of the two stock index of West African regional stock market, and eighteen of it sub–indices were utilized. Nine years data from 1998 to 2007 interval were employed. The analysis of our study shows that the distribution of the West African regional stock market returns is non–normal and non–i.i.d (independent, identically and normally distributed). The linear and non–linear dependencies in the returns appeared to be the main reasons for the data being non–i.i.d. The study also demonstrates the presence of the day–of–the–week effect in West African regional stock market.

Suggested Citation

  • Drama Bedi Guy HERVE & Yao SHEN, 2010. "Management Of Stock Price And Its Effect On Economic Growth: Case Study Of West African Financial Markets," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(3(13)/Fal), pages 231-246.
    • Handle: RePEc:ush:jaessh:v:5:y:2010:i:3(13)_fall2010:p:114
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    More about this item

    Keywords

    West Africa regional stock markets; day of the week effects; economic growth;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • N27 - Economic History - - Financial Markets and Institutions - - - Africa; Oceania
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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