- Title
- The interaction between the stock market and macroeconomic variables in South Africa
- Creator
- Ntshangase, Khanyisa
- Date Issued
- 2014
- Date
- 2014
- Type
- Thesis
- Type
- Masters
- Type
- M Com
- Identifier
- vital:11491
- Identifier
- http://hdl.handle.net/10353/d1018271
- Description
- This study investigates the interaction between stock market and macroeconomic variables in South Africa. Apart from the stock market being a channel to raise capital, another important role of the stock market is to provide correct valuation of stocks and promote efficient allocation of capital. This is important given the great need of investment capital in a country such as South Africa. Utilising quarterly data for the period from 1994 to 2012, the study employs the Johansen cointegration test and the Vector Error Correction Model (VECM) to analyse the relationship between these important variables due to the simultaneous nature of the relationship between the variables. Empirical results indicate that all the variables have a significant relationship with the stock market. The findings in this study suggest that it is important to achieve macroeconomic equilibrium in South Africa because any disequilibrium in macroeconomics feeds into the stock market and it is likely to affect investor decision making and hence access to capital by companies listed on the stock exchange.
- Format
- 100 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management & Commerce
- Language
- English
- Rights
- University of Fort Hare
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UFH Department of Economics
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