- Title
- Effects of hyperinflation on stock market performance: case of Zimbabwe
- Creator
- Mutandwa, Tsitsi Hope
- Subject
- Stocks--Zimbabwe
- Subject
- Stock exchanges--Zimbabwe
- Subject
- Inflation targeting--Zimbabwe
- Date
- 2010
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10353/24980
- Identifier
- vital:63768
- Description
- In this study an analysis of the long-term equilibrium relationship between inflation, selected macroeconomic variables and the Zimbabwe stock market (represented by market capitalization) is explored. Using stock market capitalization as a proxy for stock market performance is important for an investigator since it can capture movements in the whole market. The link between stock market performance and macroeconomic variables in particular inflation is well-documented in the literature. However, a void in the literature relates to examining the cointegration between hyperinflation and stock market performance. Although hyperinflation is nothing more than inflation at high rates, clarity on this point is necessary because of the seemingly unclear nature of the relationship in the literature. Inflation has mostly been documented as negatively impacting on financial markets. This is not so clear when it comes to hyperinflation. The Zimbabwean stock market has performed well during the high inflation period. This then raises the question: Does hyperinflation stimulate the growth of the stock market? The analysis is undertaken by employing cointegration and vector error correction modeling approach using quarterly data for the period 1980-2007 Our results show among others, that hyperinflation has impacted negatively on the growth of the stock market in Zimbabwe. However, other driving factors such as foreign direct investment and relatively high bank lending rates may have fuelled the observed growth in the stock market during the period of study.
- Description
- Thesis (MCom) -- Faculty of Management and Commerce, 2010
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (ix, 117 pages)
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- rights holder
- Rights
- All Rights Reserved
- Rights
- Open Access
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Collections
UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Tsitsi Hope Mutandwa Masters_thesis.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |