IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v10y2023i1p2180843.html
   My bibliography  Save this article

Stock market growth in Ghana: Do financial sector reforms matter?

Author

Listed:
  • Kofi Kamasa
  • Linda Owusu
  • Grace Nkansah Asante

Abstract

Owing to the significant role of financial sector reforms in economic growth, several studies have examined its transmission channels. This paper focuses on the stock market channel by investigating the impact of financial sector reforms on stock market growth in Ghana from 1990 to 2019. A multidimensional index was constructed to measure the financial sector reforms. Employing fully modified least squares (FMOLS) and error-correction models, the findings reveal that financial sector reforms promote stock market growth in Ghana in the long run. By disaggregating the financial sector reforms, the findings reveal that competitive reform has the highest impact followed by behavioural and privatisation reforms respectively. Finally, the findings reveal a bi-causal relationship between financial sector reforms and stock market growth. The paper thus implores the Securities and Exchange Commission (SEC) to reinforce its supervisory role, policy implementation, and investor protection laws to ensure greater compliance with the reforms. In addition, macroeconomic policies that are helpful to the growth of the capital market must be deepened to stimulate expected growth in the Ghanaian stock market.

Suggested Citation

  • Kofi Kamasa & Linda Owusu & Grace Nkansah Asante, 2023. "Stock market growth in Ghana: Do financial sector reforms matter?," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2180843-218, December.
    • Handle: RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2180843
    DOI: 10.1080/23311975.2023.2180843
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2023.2180843
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2023.2180843?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:10:y:2023:i:1:p:2180843. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.