Macroeconomic variables and their association to stock market returns in sub-Saharan Africa
Abstract
The thesis examines the relationship between stock market returns and
macroeconomic variables in seventeen countries that are included in the IMF’s
definition of Sub-Saharan Africa. The study is conducted using a multivariate OLS
regression and a Granger Causality test. The results suggest that macroeconomic
variables do affect stock market returns in the given region, but that the relationship
between the two is not necessarily what economic theory suggests. Even so, as
Gross Domestic Product per Capita, inflation, net inflows in the form of Foreign
Direct Investment and Real Interest Rates are significantly explaining returns of
stock market indices, they should be considered for investment decisions and
further studies.
Description
Masteroppgave(MSc) in Master of Science in Business, Finance - Handelshøyskolen BI, 2017 Masteroppgave(MSc) in Master of Science in Finance - Handelshøyskolen BI, 2017