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“Relationship between macroeconomic factors and stock price index: The Case of Dar es Salaam stock exchange market in Tanzania”

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dc.contributor.author MSABAHA, ALLEN
dc.date.accessioned 2020-11-16T05:08:54Z
dc.date.available 2020-11-16T05:08:54Z
dc.date.issued 2020
dc.identifier.citation APA en_US
dc.identifier.uri http://hdl.handle.net/11192/4797
dc.description A Dissertation Submitted in Partial/Fulfilment of the Requirements for Award of Degree of Master of Science in Accounting and Finance (MSc. A&F) of Mzumbe University en_US
dc.description.abstract This study mainly investigated the relationship between the macroeconomic factors and stock price index at DSE. Specifically, the study intended to examine the relationship between the inflation rate and stock price index (DSEI) at DSE; to examine how interest rate relates to the stock price index (DSEI) at DSE; to examine the relationship between exchange rate and stock price index (DSEI) at DSE; to examine the relationship between money supply and stock price index (DSEI) at DSE. research was carried out at Dar es Salaam Stock Exchange (DSE). The causal research design with the quantitative approach was used to study macroeconomic factors and stock price index relationship at DSE whereby the monthly data of stock price index for the last eight years (2012-2019) was taken from DSE. The descriptive and time-series analyses were performed per specific objectives, and hypotheses. The research used preliminary tests such as unit root test (Augmented Dickey-Fuller test), Optimal Lag Length Selection, and Co-integration test to see the fitness of data for further time series tests. Additionally, the study made the test of Granger causality, and Vector Auto-Regressive (VAR). Generally, the findings of the VAR model show that the exchange rate, inflation rate, interest rate, and money supply were insignificant related to the stock price index. The study further reveals that there is no long-run relationship between macroeconomic variables and stock price index. The study concludes that the exchange rate, inflation rate, interest rate, and money supply are insignificant related to the stock price index in the DSE market and have no co-integration. The policy implication of the study suggests that it is very imperative to design monetary and fiscal policies that could stabilize these variables to make efficient portfolio performance of investors and best resource utilization. The evidence of the existence of the insignificant relationship between stock price index at DSE and exchange rate, inflation rate, interest rate, and money supply call for well-conceived policies that will help financial investors and agents focus on the role of these macroeconomic factors while deciding on resource allocation. en_US
dc.language.iso en en_US
dc.publisher Mzumbe University en_US
dc.subject macroeconomic factors en_US
dc.subject stock price index en_US
dc.title “Relationship between macroeconomic factors and stock price index: The Case of Dar es Salaam stock exchange market in Tanzania” en_US
dc.type Thesis en_US


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