Journal of Applied Finance & Banking

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

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  • 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.