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Evaluation of the main African Stock Exchanges Markets for Foreign Direct Investments. A Statistical Approach

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  • Kyriazopoulos Georgios
  • Sariannidis Nikolaos
  • Parpoutzidou Androniki

Abstract

The purpose of this paper is to examine the central stock market indices of the main African Stock Exchanges after the implementation of the global financial crisis in 2009 and whether it was affected positively or negatively. We examine also if there is a correlation among them and we calculate the height of their market risk. Our paper in the introduction, deals with the theoretical framework of the Stock Exchange Market, that is, its role and function, the basic theory of stock market indices, their usefulness, the advantages of stock market operation, the factors that influence the demand for stocks, as well as the basic objects of brokerage transactions, such as stocks, bonds and bond loans. In the literature review we present the opinions of other scientists about the specific subject. In the methodology section we present the statistical methods and types we have used to analyze the central indices of the main African Stock Exchanges such as moving average, standard deviation, coefficient of variation, annual percentage change, the change range, correlation coefficient and Sharpe index. Finally, we display the results of our statistical analysis with eight figures and we explain what they represent and we write down our conclusions.  JEL classification numbers: F31, C15 Keywords: Financial Markets, Shares, Investments, Statistical Analysis.

Suggested Citation

  • Kyriazopoulos Georgios & Sariannidis Nikolaos & Parpoutzidou Androniki, 2020. "Evaluation of the main African Stock Exchanges Markets for Foreign Direct Investments. A Statistical Approach," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(5), pages 1-13.
    • Handle: RePEc:spt:apfiba:v:10:y:2020:i:5:f:10_5_13
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    References listed on IDEAS

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    3. Ntim, Collins G, 2012. "Why African Stock Markets Should Formally Harmonise and Integrate their Operations," MPRA Paper 45806, University Library of Munich, Germany.
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    More about this item

    Keywords

    financial markets; shares; investments; statistical analysis.;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

    Statistics

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