- Title
- The impact of macroeconomic factors on the South African equity market
- Creator
- Mpuku, Cwayita
- Subject
- South Africa -- Economic conditions -- Econometric models
- Subject
- Capital market -- South Africa
- Subject
- Stock exchanges -- South Africa
- Subject
- Johannesburg Stock Exchange
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MCom
- Identifier
- http://hdl.handle.net/10948/32238
- Identifier
- vital:31990
- Description
- The South African equity market is the largest equity market in Africa and plays an important role in the development of the South African economy. It is a relatively large source of finance for companies that want to invest in capital and expand their businesses. Firms that are listed on the Johannesburg Stock Exchange (JSE) are therefore privy to an additional source of capital funds in addition having access to the credit markets. The development of a country’s equity market gives an indication of the extent to which firms have access to long-term funds which are needed for investment in production of goods and services and the growth of the economy. Historical evidence shows that downturns in the equity markets can disrupt economic performance of countries. The 1929 global depression and the 2008 global recession are examples of economic disruptions that have origins in the equity markets (Mishkin, 2013:190). An understanding of the risk factors that drive an equity market is therefore beneficial to both individuals and institutions. Individuals and institutions participate in the equity market by buying and selling shares of companies that are listed on the JSE. About 40 per cent of shares on the JSE are held by institutional investors such as pension funds and unit trusts (Ambrosi, 2014). The equity market therefore has an impact on people’s savings and pension funds invested by intermediary institutions. Investors who participate in the equity market do so with the expectation of receiving returns on their investment, but such returns don’t come without risk.
- Format
- x, 76 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economics Sciences
- Language
- English
- Rights
- Nelson Mandela University
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Cwayita Mpuku.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |