Model Behavior Analysis of Stock Market Indicators and Listed Companies: Evidence from the Ghana Stock Exchange: Automated versus Floor Trading

摘要

This article studies the model behavior analysis of stock market indicators and listed companies on the GhanaStock Exchange (GSE) over a five year period. The Ghana Stock Exchange transferred from floor trading toautomation in June 2009. The GSE operates an up to date market for recurrently traded securities and an auctioncall for rarely traded securities. Data for this study was extracted from GSE’s profile of listed companies (factbook) for the period under investigation. The study results show a significant progress on stock marketindicators within 2007 to 2011 in dividend yield, volume traded, share price, market capitalization and marketreturns following the automation in mid 2009, equity premium however, decreased and no significant effects onliquidity were detected. The study further revealed that, the introduction of the electronic trading system hassignificantly increased the tempo of trading activities on the Ghanaian Stock Market. The study recommends theGSE to accommodate all quoted securities as this will promote and improve fund raising for investors.