Modeling listed private equity investments in the emerging market: A volatility and strategic risk perspective

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Abstract

This study examines the volatility dynamics and strategic implications of listed private equity (LPE) investments in Ghana, focusing on their alignment with corporate strategy, resource allocation, and portfolio management in emerging markets. Using advanced econometric models, including generalized autoregressive conditional heteroskedasticity (GARCH) (1,1), exponential GARCH (EGARCH), and fractionally integrated GARCH (FIEGARCH), the research reveals persistent volatility clustering, asymmetric responses to market shocks, and the significant influence of macroeconomic indicators such as gross domestic product (GDP) growth and inflation on LPE returns. The findings underscore the importance of integrating advanced risk management frameworks and sectoral strategies to navigate market inefficiencies and optimize investment outcomes (Ibrahim et al., 2023). Key recommendations highlight the need for regulatory reforms, sectoral prioritization in high-growth areas like financial technology (FinTech) and renewable energy, and leveraging technology-driven solutions to enhance transparency and operational efficiency. Future research directions include exploring the impact of global disruptions, such as COVID-19, on investment behavior and conducting comparative analyses across African markets to enrich the understanding of regional LPE dynamics. This study contributes actionable insights for investors and policymakers, providing a robust framework for enhancing the resilience and scalability of Ghana’s LPE market while driving sustainable economic growth.

Keywords: Listed Private Equity Investments, Statistical Modelling, Ghana, GARCH Models, VAR Models

Authors’ individual contribution: Conceptualization — C.M.M.; Methodology — C.M.M. and R.T.M.; Investigation — C.M.M.; Resources — C.M.M.; Writing — C.M.M. and R.T.M.; Supervision — R.T.M.; Funding Acquisition — C.M.M.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C58, G11, G12, G15, G32

Received: 06.01.2025
Revised: 11.04.2025; 05.09.2025
Accepted: 18.09.2025
Published online: 22.09.2025

How to cite this paper: Murape, C. M., & Mpofu, R. T. (2025). Modeling listed private equity investments in the emerging market: A volatility and strategic risk perspective [Special issue]. Risk Governance and Control: Financial Markets & Institutions, 15(3), 258–271. https://doi.org/10.22495/rgcv15i3sip8