Macroeconomic Variables and Stock Market Returns: Full Information Maximum...

Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol 2, No 4, 2011 www.iiste.org macroeconomic Variables and Stock Market Returns: Full Information Maximum likelihood Estimation John K. M. Kuwornu (Corresponding author) Department of Agricultural Economics and Agribusiness, P. O. Box LG 68, University of gold coast, Legon, Accra, Ghana Tel: +233 245 131 807 E-mail: jkuwornu@ug.edu.gh / jkuwornu@gmail.com Owusu-Nantwi, Victor Ghana Institute of Management and human beings Administration, P. O. Box AH 50, Achimota, Accra, Ghana Tel: + 233 245 131 807 E-mail: owuvic@yahoo.co.uk Abstract This study examines the consanguinity between macroeconomic variables and shoot mart returns using monthly data over period January 1992 to December, 2008. Macroeconomic variables used in this study are consumer price index (as a delegate for inflation), egregious oil price, exchange rate and 91 daylight treasury bill rate (as a proxy for stake rate). Full Information Maximum Likelihood Estimation single-valued function was used in establishing the relationship between macroeconomic variables and rake market returns in Ghana.

The empirical results reveal that there is a significant relationship between stock market returns and lead macroeconomic variables; consumer price index (inflation rate), exchange rate and Treasury bill rate seem to affect stock market returns. Consumer price index (Inflation rate) had a positive significant effect, piece exchange rate and Treasury bill rate had banish significant influence on stock market returns. On the other hand, crude oil prices do not bulge out to have any significant effect on stock returns. The results may provide some insight to corporate managers, investors and indemnity makers. Key words: stock market returns, inflation rate, crude oil price, exchange rate, interest rate, Ghana 1. Introduction In recent years financial sector developments in emerge economies aimed at shifting their financial systems from one of... If you want to possess a full essay, order it on our website: Ordercustompaper.com

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