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Inflation Hegding And Listed Stock In Zimbabwe - A Non-Linear Approach

African journal of business and economic research, 2021-03, Vol.16 (1), p.123-142 [Peer Reviewed Journal]

COPYRIGHT 2021 Sabinet Online ;Copyright Adonis & Abbey Publishers Ltd Mar 2021 ;ISSN: 1750-4554 ;EISSN: 1750-4562 ;DOI: 10.31920/1750-4562/2021/v16n1a5

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Title:
Inflation Hegding And Listed Stock In Zimbabwe - A Non-Linear Approach
Author: Magweva, R ; Mbudaya, Justine
Subjects: Asymmetry ; Cointegration ; commodities ; Forecasts and trends ; Hedge ; Hedging ; Hedging (Finance) ; Inflation ; Inflation (Finance) ; International economic relations ; Investors ; Lending ; Money ; Portfolio management ; Real estate ; Securities industry ; South Africa ; Stock exchanges ; Stock-exchange ; Stocks ; Wealth ; Zimbabwe ; Zimbabwe Stock Exchange
Is Part Of: African journal of business and economic research, 2021-03, Vol.16 (1), p.123-142
Description: This study evaluated the ability of listed stocks to hedge inflation in Zimbabwe from 2009 to 2020. A non-linear autoregressive distributed lag (NARDL) model was used to capture the short and long-run asymmetric inflation hedging capacity of listed stocks. During the low inflation phase, Zimbabwe Stock Exchange (ZSE) stock returns were a poor inflation hedge and responded symmetrically to inflation shocks. The ZSE industrial index exhibited negative inflation shocks hedging ability in the short run during high inflation periods. This implies that ZSE-listed stocks are poor inflation hedges in general. Investors and fund managers are advised to look beyond the ZSE industrial index (and consider commodities and real estate) in their endeavor to preserve their wealth against inflation increases. Investors and money managers are advised to invest in defensive and high-growth stocks and sectors in their attempt to hedge inflation.
Publisher: London: Adonis & Abbey Publishers
Language: English
Identifier: ISSN: 1750-4554
EISSN: 1750-4562
DOI: 10.31920/1750-4562/2021/v16n1a5
Source: AUTh Library subscriptions: ProQuest Central

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Inflation Hegding And Listed Stock In Zimbabwe - A Non-Linear Approach

COPYRIGHT 2021 Sabinet Online ;Copyright Adonis & Abbey Publishers Ltd Mar 2021 ;ISSN: 1750-4554 ;EISSN: 1750-4562 ;DOI: 10.31920/1750-4562/2021/v16n1a5

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