Assessing the Efficiency and Persistence of African Stock Markets through DEA Score: Evidence from COVID-19 Pandemic

IF 3 Q2 BUSINESS

Vision-The Journal of Business Perspective Pub Date : 2023-10-04 DOI:10.1177/09722629231185251

Emmanuel Owusu Oppong, Bruvine Orchidée Mazonga Mfoutou

{"title":"Assessing the Efficiency and Persistence of African Stock Markets through DEA Score: Evidence from COVID-19 Pandemic","authors":"Emmanuel Owusu Oppong, Bruvine Orchidée Mazonga Mfoutou","doi":"10.1177/09722629231185251","DOIUrl":null,"url":null,"abstract":"The few studies on COVID-19’s impact on stock market efficiency have reached mixed conclusions. However, the findings lean towards a negative impact, no studies have assessed market efficiency when returns increase in the existing capacity of COVID-19 cases, exchange rates and inflation rates. This study uses data envelopment analysis (DEA) and the DEA-adjusted estimator. We finally adopt the cross and time product ratios to determine the persistence of stock market efficiency. We find that the COVID-19 pandemic severely impacted the efficiency of African stock markets in 2021 and that the efficiency of African stock markets persists only in the short run. These findings are relevant to investors seeking to diversify their portfolios during pandemics and to regulators of African stock markets. Global investors should diversify their portfolios with African stock markets to mitigate the impact of pandemics on their investments. To reap the benefits of diversification, investors should invest in efficient African markets during pandemics and sell stocks in inefficient markets in the short run. In addition, regulators of African stock markets should adopt technologies that aid in the flow of information among investors.","PeriodicalId":44860,"journal":{"name":"Vision-The Journal of Business Perspective","volume":"65 1","pages":"0"},"PeriodicalIF":3.0000,"publicationDate":"2023-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Vision-The Journal of Business Perspective","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/09722629231185251","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}

引用次数: 0

Abstract

The few studies on COVID-19’s impact on stock market efficiency have reached mixed conclusions. However, the findings lean towards a negative impact, no studies have assessed market efficiency when returns increase in the existing capacity of COVID-19 cases, exchange rates and inflation rates. This study uses data envelopment analysis (DEA) and the DEA-adjusted estimator. We finally adopt the cross and time product ratios to determine the persistence of stock market efficiency. We find that the COVID-19 pandemic severely impacted the efficiency of African stock markets in 2021 and that the efficiency of African stock markets persists only in the short run. These findings are relevant to investors seeking to diversify their portfolios during pandemics and to regulators of African stock markets. Global investors should diversify their portfolios with African stock markets to mitigate the impact of pandemics on their investments. To reap the benefits of diversification, investors should invest in efficient African markets during pandemics and sell stocks in inefficient markets in the short run. In addition, regulators of African stock markets should adopt technologies that aid in the flow of information among investors.

查看原文本刊更多论文

通过DEA评分评估非洲股票市场的效率和持久性:来自COVID-19大流行的证据

关于新冠肺炎对股市效率影响的少数研究得出了不同的结论。然而，研究结果倾向于负面影响，没有研究评估在现有COVID-19病例处理能力、汇率和通货膨胀率的回报增加时的市场效率。本研究采用数据包络分析(DEA)及经DEA调整的估计量。最后，我们采用交叉积比和时间积比来确定股票市场效率的持续性。我们发现，2019冠状病毒病大流行严重影响了2021年非洲股市的效率，非洲股市的效率仅在短期内持续。这些发现对在大流行期间寻求投资组合多样化的投资者和非洲股票市场的监管机构都有意义。全球投资者应将其投资组合多样化，投资于非洲股票市场，以减轻流行病对其投资的影响。为了获得多样化的好处，投资者应在大流行病期间投资于有效的非洲市场，并在短期内出售低效市场的股票。此外，非洲股票市场的监管机构应采用有助于投资者之间信息流动的技术。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Vision-The Journal of Business Perspective Multiple-

CiteScore

4.60

自引率

0.00%

发文量

121

期刊介绍： Vision-The Journal of Business Perspective is a quarterly peer-reviewed journal of the Management Development Institute, Gurgaon, India published by SAGE Publications. This journal contains papers in all functional areas of management, including economic and business environment. The journal is premised on creating influence on the academic as well as corporate thinkers. Vision-The Journal of Business Perspective is published in March, June, September and December every year. Its targeted readers are researchers, academics involved in research, and corporates with excellent professional backgrounds from India and other parts of the globe. Its contents have been often used as supportive course materials by the academics and corporate professionals. The journal has been providing opportunity for discussion and exchange of ideas across the widest spectrum of scholarly opinions to promote theoretical, empirical and comparative research on problems confronting the business world. Most of the contributors to this journal range from the outstanding and the well published to the upcoming young academics and corporate functionaries. The journal publishes theoretical as well as applied research works.