Record Details

The Relationship between Inflation and Stock Prices in Zambia

Asian Journal of Business and Management

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Field Value
 
Title The Relationship between Inflation and Stock Prices in Zambia
 
Creator Chidothi, Daniel
Sheefeni, Johannes Peyavali Sheefeni
 
Subject Inflation
stock prices
unit root
Granger-causality
vector autoregressive
Zambia
 
Description This study examines a relationship between inflation and stock prices for Zambia, over the period 1999–2011, using monthly all share stock prices and inflation rates. The study employed Augmented-Dickey-Fuller and Phillip-Perron for testing the stationarity of the series, Granger-causality test is used to determine the causality relationship between the variables, VAR and Cointegration techniques are employed to determine the short run and long run relationship respectively between the two variables. The unit root test results show that the series are non-stationary at level form but after differentiating they become stationary, the causality test results show a one way causal relationship running from inflation to stock prices and not vice-versa. There was no cointegration found among the variables meaning that there exists only a short run relationship. In general the results support the economic theory which suggests a negative relationship between inflation and stock prices.
 
Publisher Asian Online Journals
 
Date 2013-10-14
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier https://ajouronline.com/index.php/AJBM/article/view/513
 
Source Asian Journal of Business and Management; Vol. 1 No. 4 (2013): October 2013
2321-2802
 
Language eng
 
Relation https://ajouronline.com/index.php/AJBM/article/view/513/247