MANAGEMENT OF STOCK PRICE AND ITS EFFECT ON ECONOMIC GROWTH: CASE STUDY OF WEST AFRICAN FINANCIAL MARKETS
MANAGEMENT OF STOCK PRICE AND ITS EFFECT ON ECONOMIC GROWTH: CASE STUDY OF WEST AFRICAN FINANCIAL MARKETS

Summary/Abstract: This paper investigates the statistical properties of stock returns in the West African regional stock market and the link between the West African regional stock market and economic growth. To examine the nature of the distribution of West African regional stock returns, the daily closing prices of the two stock index of West African regional stock market, and eighteen of it sub–indices were utilized. Nine years data from 1998 to 2007 interval were employed. The analysis of our study shows that the distribution of the West African regional stock market returns is non–normal and non–i.i.d (independent, identically and normally distributed). The linear and non–linear dependencies in the returns appeared to be the main reasons for the data being non–i.i.d. The study also demonstrates the presence of the day–of–the–week effect in West African regional stock market.

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