Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/294300 
Year of Publication: 
2023
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 10 [Issue:] 1 [Article No.:] 2180843 [Year:] 2023 [Pages:] 1-21
Publisher: 
Taylor & Francis, Abingdon
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.
Subjects: 
cointegration
financial sector reforms
FMOLS
Ghana
stock market growth
JEL: 
G12
G21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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