Original Research

Electioneering activities and their impact on the Ghana Stock Exchange

Akyene Tetteh, Jeron K. Arthur
Journal of Economic and Financial Sciences | Vol 13, No 1 | a447 | DOI: https://doi.org/10.4102/jef.v13i1.447 | © 2020 Akyene Tetteh, Jeron K. Arthur | This work is licensed under CC Attribution 4.0
Submitted: 23 January 2019 | Published: 20 August 2020

About the author(s)

Akyene Tetteh, Department of Management Studies, University of Mines and Technology, Tarkwa, Ghana
Jeron K. Arthur, Department of Mathematical Sciences, University of Mines and Technology, Tarkwa, Ghana


Orientation: Literature is scanty on the euphoria around Ghana’s electioneering activities and their impact on economic activities.

Research purpose: This paper studies electioneering activities and their impact on the Ghana Stock Exchange (GSE) returns.

Motivation for the study: Literature have established that political risk is statistically significant in emerging stock markets and from 5 January to 7 December 2016, the GSE lost 23.47% of its trading values. Hence, this paper finds it imperative to examine whether electioneering activities indeed have an impact on GSE.

Research approach/design and method: Using daily data span from 5 January 2016 to 7 December, 2016. The autoregressive distributed lag (ARDL) bound test approach to cointegration and Granger causality test was used to examine the data.

Main findings: The result suggests that electioneering activity impact negatively on the GSE returns both in the short-run and long-run, but its cause is not clear. It impacts creates arbitrage opportunities for investors and may punish the political party in power.

Practical/managerial implications: Political parties in power should recognize that electioneering activities creates a dilemma between regaining power or managing the economy.

Contribution/value-add: Ghana’s electioneering activities disproves some investment theories, that is, investors assume risk may not reflect their expected return since the stock market efficiency is nullified by arbitrage opportunity.


electioneering activities, Ghana Stock Exchange, political party, ARDL bound test, Granger causality test


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