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1
Daggash, Jibrin, and Terfa W. Abraham. "Effect of Exchange Rate Returns on Equity Prices: Evidence from South Africa and Nigeria." International Journal of Economics and Finance 9, no. 11 (2017): 35. http://dx.doi.org/10.5539/ijef.v9n11p35.
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This paper examines the exchange rate returns of the Rand (relative to the US dollar) and the Naira (relative to the US dollar) for the presence of volatility. It also examines the effect of the exchange rate returns on the performance of their respective stock market. While it was found that the returns of the South African Rand was volatile, the Nigerian naira was not. Estimating the effect of exchange rate returns and crude oil price on the stock market indices of both countries showed that exchange rate return have a positive effect on the performance of the Nigerian stock exchange thus, confirming the stock flow hypothesis for Nigeria and refuting same for South Africa. Although the VAR granger causality identifies short run fluctuation of the naira as a significant factor affecting the performance of the Nigerian stock exchange in the short run, the Johannesburg stock exchange was found to be mostly affected by short run changes in the Rand and the UK FTSE 100. The paper concludes that policies aimed at stabilizing exchange rate and encouraing more non-oil stocks to be quoted in the Nigerian stock exchange will important. For the Johanesburg stock exchange, raising the listing requirement for firms quoted in the UK FTSE 100 and also seeking listing or already listed in the JSE will be a plausible idea. For both countries, however, curtailing swings in their exchange rate returns would help attract new investments and sustain existing ones hence, helping to spur growth.
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Nwamaka, Ozuomba Chidinma, Onyemaechi Uchenna, and Ikpeazu Nkechi. "Effect of Globalization on Nigerian Financial Sector." International Journal of Management Excellence 8, no. 3 (2017): 991–1003. http://dx.doi.org/10.17722/ijme.v8i3.898.
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The study examined the effect of globalization on the Nigerian financial sector and to ascertain the contribution of globalization on the Nigerian stock exchange and commercial banks. Assets of the Nigerian stock exchange and commercial banks were used as performance indicators. The data used are Nigerian yearly data from 1983 to 2014; the data were analyzed using descriptive statistics, ordinary least square statistical technique, Johannes’s co-integration and error correction mechanism. We used Augmented Dickey-fuller statistics test for stationary. We proxy globalization with degree of openness measured by total trade divided by gross domestic product, foreign direct investment flows, Real Gross Domestic Product, external debt flows, nominal exchange rate and gross capital formation. Two null hypotheses were formulated and were tested. They were rejected based on overall significant of models using F statistics at 5 percent level of significance. The result of our estimate based on overall significant of models using F statistics at 5 percent level of significance shows that Nigerian financial sector as a whole has benefited from globalization. Some of the globalization proxy variables take out a priori signs while some did not. However, the foreign direct investment flows and Real Gross Domestic Product affected the performance of the Nigeria Stock Exchange and commercial banks positively while degree of openness, external debt flows, nominal exchange rate and gross capital formation affected the Nigeria stock exchange and Commercial Banks negatively. This shows that Nigerian foreign trade is low. External debt flow has a negative effect on the Nigerian stock Exchange and positive on commercial banks. Nigeria should discourage external loans. Gross capital formation and external debt flows affected the Nigeria stock exchange negatively. We therefore recommend that the recent re-capitalization and debt recovery exercise and monitoring macroeconomic stability be encouraged to gain confidence by investors in the financial sector.
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Adegboyega, Bidemi S. "Inflation and Stock Returns: Implication for Nigerian Stock Exchange Market." AGOGO: Journal of Humanities 6 (February 15, 2021): 1. http://dx.doi.org/10.46881/ajh.v6i0.231.
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Understanding various hypotheses often dictates the nexus between inflation and stock returns and over the years studies have failed to establish which among these hypotheses are examined in Nigeria. Therefore, this present study examines the long-run relationships and dynamic interactions between stock returns and inflation in Nigeria using quarterly data of the All Share Price Index from the Nigerian Stock Exchange and Inflation rate together with other selected macroeconomic variables such as interest rate, exchange rate and growth in real GDP from 1985Q1 to 2018Q4. The analytical technique of Vector Error Correction Model, Johansen Co-integration technique and Granger Causality test were exploited. From the results, it is evident there exists a long run relationship between stock returns and inflation in Nigeria. The short run dynamic model also revealed that the speed of convergence to equilibrium is moderate implying that there is a short run relationship between stock returns and inflation. However, in order to establish the causal links and its directions between inflation rate and stock returns, the Johansen co-integration shows that there exist a unidirectional relationship between stock return and inflation rate. This is attributable perhaps to the instability of prices of stocks noticed over time and also the study supported the Proxy hypothesis. Based on the above, it is a perfect avenue for investors to use in an attempt to hedge against inflation.
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Adebowale, Edward Adedoyin, and Akindele Iyiola Akosile. "Interest Rate, Foreign Exchange Rate, and Stock Market Development in Nigeria." Binus Business Review 9, no. 3 (2018): 247–53. http://dx.doi.org/10.21512/bbr.v9i3.4941.
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This research investigated the effect of interest rate and foreign exchange rate on stock market development in Nigeria. This research was centered on two research problems. First, it was whether interest rate had a significant effect on stock market development in Nigeria. Second, it was whether foreign exchange rate had a significant impact on stock market development in Nigeria. The scope of the research covered the period from 1981 to 2017. Data for this period were chosen because it covered pre and post-liberalization periods of Nigerian financial system. This research made use of ex post facto research design. Secondary data were sourced from Nigerian Stock Exchange reports, Central Bank of Nigeria statistical bulletins, and National Bureau of Statistics publications. Data were collected on Stock Market Capitalization (SMC), Prime Lending Rate (PLR) and Real Exchange Rate (RER) (Nigerian Naira in relation to American Dollars of the United States). Data analysis was carried out with Ordinary Least Squares (OLS) and Cochrane-Orcutt Iterative techniques. The findings reveal that interest rate has a significant negative effect, and foreign exchange rate has a significant positive effect on Nigerian stock market development during the period covered. It is suggested that monetary authorities should strive to formulate policies that will make interest and foreign exchange rates stable, competitive, and at a level that will stimulate the investment of funds in the stock market.
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Ejem, Chukwu Agwu, Udochukwu Godfrey Ogbonna, and Godwin Chigozie Okpara. "Efficient Market Hypotheses Controversy and Nigerian Stock Exchange Relations." American International Journal of Economics and Finance Research 2, no. 1 (2020): 1–13. http://dx.doi.org/10.46545/aijefr.v2i1.192.
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This study; Nigerian Stock Exchange and Efficient Market Hypothesis was done using All Share Index (ASI) with daily data from January 02, 2014 to May 20, 2019 (1333 observations) and annual data from 1985 to 2018 (34 observations) collected from the Nigeria Stock Market fact books. The study employed three analytical methods namely the unit root test, GARCH Model and the Autocorrelation cum patial autocorrelation method for the assessment of weak form hypothesis on the daily and annual all share index in the Nigerian Stock market. The results of these evaluations indicated a significant relationship between the price series and their lagged values implying that stock price series do not follow a random walk process in Nigerian stock market. Thus, affirming that the Nigeria Stock Exchange is not efficient in weak form. In the light of this, the researchers recommend that the supervisory and regulatory authorities should strengthen the Nigerian Stock Market through palliating its regulations pertaining to transparency of information management rules such as market barriers and stringent listing requirement, publication of accounts, notices of annual general meeting and the like.
 JEL Classification: C1, C4, E6, G1
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Osamwonyi, Ifuero Osad, and Osazee G. Omorokunwa. "Presidential Election and Portfolio Selections in the Nigeria Stock Exchange." International Journal of Financial Research 8, no. 4 (2017): 184. http://dx.doi.org/10.5430/ijfr.v8n4p184.
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This study seeks to investigate the effect of presidential elections on investors’ portfolio selection in Nigeria from 2003 to 2011. The regression analysis was used to identify the effects that election could have on stock prices in the country, while event study was applied to investigate the focused effects of election event on portfolio selection in the Nigerian stock exchange. Price index for high and medium capitalization stocks were used in the analysis. The study showed that there were low returns performance in the stock market during elections and that elections events have strong (generally) negative effects on abnormal returns for the selected companies in the Nigerian Stock Exchange. In addition, the study showed a negative relationship between the return and risk behaviour of selected companies and election announcement in Nigeria. It is recommended that government and relevant authorities should increase the surveillance of both the market and political system prior to the presidential election in order to curtail the instability during this period.
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Abdullahi, Shafiu. "Measuring Co-Movements and Linkages between Nigeria and the UAE Stock Exchanges: Is there Opportunity for Portfolio Building?" Journal of Advanced Research in Economics and Administrative Sciences 1, no. 2 (2020): 106–22. http://dx.doi.org/10.47631/jareas.v1i2.124.
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Purpose: The main objective of this study is to examine the relationship between Nigerian Stock Exchange and Dubai stock exchange with the aim of finding out the direction of movements between their respective indices. Approach/Methodology/Design: The methodology adopted for the analysis is ARDL cointegration model and the Generalized Method of Moment (GMM). This is because of their known efficiency in detecting patterns between variables. Findings: The result of the short-run analysis using GMM shows that there is existence of short-run causality between the Dubai financial market (DFM) and the Nigerian stock exchange (NSE). Thus, for investors looking for short- run arbitrage opportunity between the markets, they shall look elsewhere. But, the result of bound testing has shown lack of cointegration between the two markets. This is a sign of existence of opportunities for portfolio diversification between Nigeria stock exchange and Dubai financial market, since the two markets are not cointegrated in the long-run. Practical Implications: The study helps bridge the empirical literature gap in stock market integration and portfolio diversification with reference to the Nigeria and UAE. It will, therefore, guide local and foreign investors with interest in Nigeria and UAE Stock Exchanges. It will also guide Nigerian and UAE policy makers to understand the market better, especially as it concerns financial contagion. Originality/value: This study provides further evidence on stock market integration in emerging markets. New researches shall adopt different methodology such as use of volatility tracking models to measure volatility linkage between the markets.
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Najaf, Rabia, and Khakan Najaf. "AN EMPIRICAL STUDY ON THE DYNAMIC RELATIONSHIP BETWEEN CRUDE OIL PRICES AND NIGERA STOCK MARKET." International Journal of Research -GRANTHAALAYAH 4, no. 9 (2016): 157–69. http://dx.doi.org/10.29121/granthaalayah.v4.i9.2016.2550.
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In this paper, we have examined the crude oil price on the performance of Nigerian stock exchange and exchange rate act as the plausible countercyclical tool .we have applied the different models and collected the results that crude oil prices have direct impact on the stock exchange of Nigeria. The Nigeria stock exchange is regulated by the Securities and Exchange Commission .Nigeria stock exchange has the automated trading system. The basic facility of Nigeria trading system is (ATS),it is helpful to remote trading system.Consequently, most of the investorsdo trade with the method of ATS.This study is also proving that Nigeria stock exchange has influenced on the performance of the economy, Impact of oil crisis on the Nigeria stock exchange, Impact of crude oil crisis on the development of country, Effect of exchange rate policy on the performance of Nigeria stock exchange.
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Ijeoma, Ngozi. "The effect of global financial crisis on the perfor-mance of Nigerian stock exchange." International Journal of Accounting and Economics Studies 5, no. 1 (2017): 46. http://dx.doi.org/10.14419/ijaes.v5i1.7344.
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This study assessed the effect of the Global Financial Crisis on the Nigerian Stock market from 2004 to 2013. The objectives of the study include to ascertain the effects of the Global Financial Crisis on the market capitalization of the Nigerian Stock Exchange, to examine the effects of the Global Financial Crisis on the volume and value of shares traded on the floor of the Nigerian Stock Exchange, and to determine the effects of the Global Financial Crisis on the number of listed companies on the Nigerian Stock Exchange. Secondary source of data collection from the Nigerian Stock Exchange was employed. The statistical tools used in this study is the Kruskal-Wallis test. The result of the analysis found that global financial crisis has no significant effect on market capitalization in the Nigerian Stock Exchange. It was equally found that global financial crisis has no significant effect upon the value of shares traded on the floor of the Nigerian Stock Exchange. Findings of the study revealed that there exist no significant relationship between the Global Financial Crisis, and the volume of shares traded on the floor of the Nigerian Stock Exchange. In addition, it was found that there exist no significant relationship between the Global Financial Crisis and number of listed companies in the Nigerian Stock Exchange.
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Njogo, Bibiana, Jaiyeoba Oladele, and Oladotun Mabinuori. "Investors’ sentiment and stock trading in the Nigerian capital market." Caleb International Journal of Development Studies 3, no. 2 (2020): 236–48. http://dx.doi.org/10.26772/cijds-2020-03-02-014.
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This study examined the relationship between investors sentiment and stock trading for thirty listed firms in Nigeria, covering periods of 2015-2019. This study comes at a time when behavioral economics gains larger interest in investment decision. This school of thought dismisses the assertion of neoclassical economics that markets are efficient;, hence they cannot be beaten by consistently earning abnormal profits. Two research objectives were formulated for the study, which borders on determining whether investors’ sentiment affects stock trading of corporate firms in Nigeria, and whether investors’ sentiment affect trading stocks for industries in Nigeria differently. Data for the study were sourced from banking, manufacturing, and insurance sectors of the Nigerian Stock Exchange. Fixed effect regression was used to analyse the effect of investors’ sentiment on stock trading. The Analysis of Covariance was used to examine whether investors’ sentiment differently affect trading stocks for different sector in Nigeria. The results obtained showed that investors’ sentiment exerts significant impact on stock trading of the firms investigated, and it is used to affect trading stocks for industries in Nigeria differently. The study recommends that investors should make use of fundamental analysis and technical analysis to trade stocks. Keywords: Behavioural economics, efficient market hypothesis, Investors’ sentiment, neoclassical economics, and stock trading.
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Ayadi, Olusegun Felix, Ade Thompson Ojo, Mary Femi Ayadi, and Dorcas Titilayo Adetula. "Gender diversity in the governance of the Nigerian securities market." Corporate Governance 15, no. 5 (2015): 734–46. http://dx.doi.org/10.1108/cg-01-2015-0007.
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Purpose – The purpose of the paper is to identify the key determinants of stock market performance in Nigeria. More specifically, it is an attempt to determine the effect of gender diversity in leadership roles on the performance of the stock market in Nigeria. Design/methodology/approach – The paper uses annual data from 1980 through 2011 to model the development and performance of the Nigerian stock market through a modified Calderon-Rossell approach. Specifically, the leadership role of women in the governance of the stock market is investigated. Robust regression approach is used to avoid complications associated with the violations of the assumptions underlying the application of ordinary least squares regression. Findings – The empirical analysis shows that level of income, real exchange rate, liquidity, banking sector development, institutional quality, macroeconomic stability and gender are important determinants of stock market performance in the Nigerian stock market. Further, the results indicate that at worst, gender diversity does not play into stock market performance in Nigeria, and at its best, the appointment of women in the management of the Nigerian Stock Exchange is associated with better performance. Originality/value – The paper contributes to the empirical literature on the role of gender diversity and financial performance. The contribution of this paper is the inclusion of gender as an institutional factor among the determinants of stock market performance in Nigeria.
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Adilieme, Chibuikem, and Obinna Umeh. "Sensitivity of Real Estate Investment Return to Market Return Index: The Case of Nigerian Real Estate Investment Trusts." Baltic Journal of Real Estate Economics and Construction Management 8, no. 1 (2020): 197–207. http://dx.doi.org/10.2478/bjreecm-2020-0014.
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Abstract The level of sensitivity of every investment option to a market index is crucial to investors. Sensitivity analysis of individual or a set of returns on investments to market return index predicts the reaction of the investment(s) to changes in the market index; informs investors of prospective performance of different investments types; as well as assists the investors in making appropriate decisions on investment selections. This paper assessed how sensitive indirect real estate investments in Nigeria were to market index. The three companies whose asset returns were considered in this study were real estate investment trusts listed in the Nigerian Stock Exchange. The data used in this study were sourced from annual reports of the listed companies, and reports of the Nigerian Stock Exchange. The beta coefficients were used to determine the sensitivity of the selected stocks to market return index. The study found a very low and insignificant beta coefficient among various real estate investments and market return index. Hence, there is no relationship between the market return index and the returns on the Real Estate Investment Trusts listed in the Nigerian Stock Exchange.
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Okechukwu, Izunobi Anthony, Nzotta Samuel Mbadike, Ugwuanyim Geoffrey, and Benedict Anayochukwu Ozurumba. "Effects of Exchange Rate, Interest Rate, and Inflation on Stock Market Returns Volatility in Nigeria." INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE AND BUSINESS ADMINISTRATION 5, no. 6 (2019): 38–47. http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.56.1005.
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This study employed GARCH (1.1) techniques to evaluate the existence of high stock market returns volatility, and the impact of the exchange rate, interest rate and inflation on stock market returns in Nigeria, using monthly series data from 1995 – 2014. Excessive volatility hinders the stock market from playing its role of Mobilizing, financial resources from surplus units to deficit units and may cause a financial crisis. The research finding shows that interest rate has a negative relationship with stock market returns, while the inflation rate and exchange rate have a positive relationship with stock market returns. The conclusion therefore is, there is high and persistent volatility in the Nigerian stock market returns. Exchange rate, interest rate, and inflation significantly impact stock market return volatility in Nigeria. The study recommends that regulatory authorities should take proactive steps to minimize stock market return in order to restore confidence in the market.
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ABDU, Maryam, and Sunday Moses IBRAHIM. "EFFECT OF STOCK EXCHANGE OPERATIONS ON ECONOMIC GROWTH IN NIGERIA." LASU Journal of Employment Relations & Human Resource Management 1, no. 1 (2018): 258–64. http://dx.doi.org/10.36108/ljerhrm/8102.01.0182.
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This study examined the effect of Nigerian Stock Exchange operations on the Economic Growth in Nigeria. Data was collected from secondary sources, through the central bank of Nigeria database. To achieve the objective of the study, Nigerian Stock Exchange operations was proxy by All Share Index while Economic Growth was proxy by Gross Domestic Product. The study covered a seventeen year period. Ordinary least square regression technique was employed in examining the effect of all share index on economic growth. The findings revealed that all share index and gross domestic product are positively and significantly correlated. Based on the findings of this study, it is therefore recommended that an enabling environment should be created in order to enhance the participation of both private and public sector in the security market so as to stimulate economic growth
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Ogbulu, Onyemachi Maxwell. "Oil Price Volatility, Exchange Rate Movements and Stock Market Reaction: The Nigerian Experience (1985-2017)." American Finance & Banking Review 3, no. 1 (2018): 12–25. http://dx.doi.org/10.46281/amfbr.v3i1.200.
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Given the observed volatility in crude oil prices in the international oil market and the role which oil and gas play in the Nigerian economy, this paper is an attempt to investigate the impact of crude oil prices and foreign exchange rate movements on stock market prices in Nigeria. In addition, the paper examined whether there is any volatility pass-through between the dollar price of Nigerian crude oil, foreign exchange rate of the Naira and stock market prices respectively. Data employed for the study are monthly values of the Nigerian Stock Exchange (NSE) All-Share Index (ASI), Dollar price of Nigerian Crude Oil (DPO) and the Official Exchange Rate of the Naira to the US Dollar (FXR) from January, 1985 to August, 2017. The methodology adopted for the study include the ADF unit root tests, Johansen co-integration tests, the ECM technique, Granger causality tests, variance decomposition as well as the GARCH(1,1) to model the volatility relationships among the variables. Findings reveal that there is one long-run dynamic co-integrating relationship among the variables ASI, DPO and FXR while the ECM results indicate that Crude oil price (DPO) significantly impact on Stock market prices. The Granger causality test reports a bi-directional causality relationship between ASI and DPO and a unidirectional causality running from FXR to ASI. The ARCH-GARCH volatility analysis demonstrates vividly that stock market prices in the NSE exhibit ARCH effect with a significant and positive first order ARCH term. The GARCH term is also positive and significant indicating that previous month’s stock market price volatility significantly influences current stock market volatility in the NSE. In addition, findings show that the volatility of dollar price of Nigerian oil (DPO) in the world oil market is significantly transmitted to the volatility of stock market prices in Nigeria. The pass-through effect of the volatility of exchange rate (FXR) to the volatility of stock market prices is also positive and significant. These findings offer significant informational signal to policy makers, portfolio managers/advisors and the investing public in achieving optimal asset and portfolio profile.
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Omodero, Cordelia Onyinyechi. "CORRUPTION AND STOCK MARKET PERFORMANCE IN NIGERIA." Annals of Spiru Haret University. Economic Series 18, no. 4 (2018): 23–40. http://dx.doi.org/10.26458/1841.
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AbstractThe study examines the effect of corruption (using corruption perception index and Nigeria corruption ranking as proxies) on the stock market performance (proxied with share price index) in Nigeria. The study employed time series data spanning twenty years (1996-2016). Data availability especially on corruption indices was the major reason underlying the choice of period. The data were obtained from CBN Statistical Bulletin and Transparency International website. With the aid of SPSS version 20, the study used Multi-regression analysis and student t-test for the test of hypotheses. The study finds a significant positive correlation between corruption and stock market performance in Nigeria. The result reveals robust positive and significant relationships between Nigeria Corruption Ranking, Corruption perception index and Share price index. The result of the study explains the integration of graft into the Nigerian economic system. Therefore, adoption of a strong form of stock market efficiency by the Security and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for actualization by all listed firms in Nigeria is hereby recommended. In addition, we recommend that the Federal and State governments should formulate more result-oriented policies and rules that could help combat corruption more effectively.
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Akinola, Grace O., and Olusegun Timothy Odesola. "Information and Communications Technology and Inventory Management amongst Breweries in Nigeria." Journal of Information Systems Engineering and Business Intelligence 4, no. 1 (2018): 39. http://dx.doi.org/10.20473/jisebi.4.1.39-45.
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This study examined the effect of ICT on inventory management amongst breweries in Nigeria. Secondary data were sourced for this study. The population for the study comprises all brewery companies quoted on the Nigerian Stock Exchange. Purposive sampling technique was used in selecting the three leading brewery companies in Nigeria, namely the Nigerian Breweries Plc; Guinness Nigeria Plc; and International Breweries Plc that represent 75% of the breweries quoted in the Nigerian Stock Exchange factsbook. Secondary data on ICT/ software costs, inventories, sales turnover/revenue, and assets were sourced from years 2006 to 2015 Annual Reports and Statements of Accounts of the three selected breweries and the Nigeria Stock Exchange facts book. The data collected were analyzed using descriptive statistics ( tables, mean and standard deviation) and inferential statistics (Ordinary Least Square (OLS) method). The results also showed that ICT usage had no significant positive relationship on inventory management (t = 0.021, P > 0.01). The study concluded that ICT had no significant positive effect on inventory management in the Nigerian Brewery industry. It is recommended that brewery firms in Nigeria should deploy the right software for inventory management. The limitation of this research is what were used to measure the inventory management and Information and Communications Technology (ICT) as contrary results could be obtained if these variables are measured using other yardsticks. The improvement of the respondent required to see the other problem and another kind of business.
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Garba, Sunusi, Boudiab Mourad, and Muhammad Adamu Chamo. "The Effect of Inventory Turnover Period on the Profitability of Listed Nigerian Conglomerate Companies." International Journal of Financial Research 11, no. 2 (2020): 287. http://dx.doi.org/10.5430/ijfr.v11n2p287.
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This study analyses the association concerning inventory turnover management and Nigerian conglomerate firms’ profitability. The study is used a historical panel data analysis. Data were generated from the yearly accounts of listed firms from 2007 to 2016. The population of the study consists of six conglomerate firms registered on the Nigerian Stock Exchange. Feasible generalized least square (FGLS) regression was utilized as tools of analysis in the study. The findings establish that inventory turnover management affects Nigerian conglomerate companies’ profitability inversely associated to the profitability of the listed conglomerate firms in Nigeria. The study suggests that there must be regular stock-taking to determine eventually, the slothful stocks to dodge over venture in such stocks (if any). Furthermore, if there is no high demand for the goods the inventory needs to be reduce that are obsolescence. Management should also implement an extraordinary inventory management measures.
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Ayunku, Peter Ego. "Does Macroeconomic Indicators Influence Stock Price Behavior? Evidence from Nigerian Stock Market." International Finance and Banking 6, no. 2 (2019): 26. http://dx.doi.org/10.5296/ifb.v6i2.14928.
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This paper investigate whether macroeconomics indicators influences stock price behavior in Nigerian stock market, using an annual time series data spanning from 1985-2015. The study employed some econometric tools such as Augmented Dicker Fuller (ADF) Unit Root test, Johansen’s co integration test, Vector Error Correction Model (VECM) to analyze the variables of interest. The study found out that Money Supply (MS) has an inverse but statistically significant influence on stock prices in Nigerian stock market also Treasury Bill Rate (TBR) has an inverse and statistically insignificant influence on stock market prices. While on the other hand, Market Capitalization (MCAP) has a positive and statistically significant influence on stock prices while Exchange Rate (EXR) has positive but statistically insignificant relationship with stock prices in the Nigerian Stock Market. In view of the above, the study recommends amongst others that monetary authorities should try as much as possible to implement sound macroeconomic policies that would enhance stock market growth and development in Nigeria.
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Aremu Akinde, Mukail, Eriki Peter, and Ochei Ailemen Ikpefan. "Portfolio selection strategies and cognitive psychology biases: a behavioral evidence from the Nigerian equity market." Investment Management and Financial Innovations 15, no. 3 (2018): 267–82. http://dx.doi.org/10.21511/imfi.15(3).2018.22.
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The empirical evidence in the developed equity markets such as the United States, the United Kingdom, Germany, Japan and emerging markets had pronounced that there are institutional and individual investors’ cognitive psychology and mental biases in favor of the Growth Stocks, that is, the Growth Stocks are always preferred to the Value Stocks by the investors. The investors most times prefer the Growth Stocks to the Value Stocks irrespective of the stock fundamentals behavior in the equity market. The paper investigated whether Cognitive Psychology and Mental biases affect Portfolio Selection strategies using the Growth or the Value Stocks investment styles in the Nigerian Stock Market. In the study, the summary of the primary data was described and Multinomial Logistic Regression (MLR) models were adopted to make inferential decisions. The paper collected primary data through questionnaire administered to individual and institutional investors on the floor of Nigeria Stock Exchange (NSE). The findings from the analyses conducted confirmed a strong existence of Cognitive Psychology and mental biases in favor of the Growth Stocks in the Nigerian Equity Market. Investors had more belief in Growth Stocks than the Value Stocks notwithstanding the behavior of the market fundamentals. The study recommended that investors should seriously consider occurrences and performance fundamentals in Portfolio Selection in the Nigerian Equity Market.
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Babangida, Jamilu S., and Asad-Ul I. Khan. "Effect of Monetary Policy on the Nigerian Stock Market: A Smooth Transition Autoregressive Approach." Central Bank of Nigeria Journal of Applied Statistics 12, No. 1 (2021): 1–21. http://dx.doi.org/10.33429/cjas.12121.1/6.
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This paper examines the nonlinear effect of monetary policy decisions on the performance of the Nigerian Stock Exchange market, by employing the Smooth Transition Autoregressive (STAR) model on monthly data from 2013 M4 to 2019 M12 for All Share Index and monetary policy instrument. This study considers the two regimes characterizing the stock market, which are the lower regime (the bear market) and the upper regime (the bull market). The results show evidence of nonlinear effect of monetary policy on the stock exchange market. Monetary policy rate, money supply, lagged monetary policy rate and lagged treasury bill rate are found to have significant positive effects on the stock exchange market in the lower regime while current treasury bill rate shows a negative effect. In the upper regime, money supply and lagged treasury bill rate have significant negative effect on the stock market. The current treasury bill rate is found to have a positive effect on the stock exchange market. It is recommended that the Central Bank of Nigeria should maintain a stable money supply growth that is consistent with increased activities in the Nigerian stock market.
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Abdullahi, Ibrahim Bello, and Segun Kamorudeen Fakunmoju. "Market Liquidity and Stock Return in the Nigerian Stock Exchange Market." Binus Business Review 10, no. 2 (2019): 87–94. http://dx.doi.org/10.21512/bbr.v10i2.5588.
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This research examined the effect of market liquidity, inflation, and exchange rates on stock return in Nigerian Stock Exchange market. The researchers used ex-post facto design and employed secondary data subjected to Auto-regressive Distributive Lag (ARDL) bound test method of analysis within the period of twenty-one years. Findings reveal that in the short run, stock turnover, trading volume, exchange, and inflation rates have affected stock return positively and significantly. In the long run, market turnover has a positive effect. However, inflation and exchange rates have affected stock return negatively and significantly. Then, trading volume has a negative but insignificant effect on stock return, which is all at 5% level of significance. The researchers conclude that market liquidity, exchange, and inflation rates affect stock return. Therefore, the researchers recommend demutualization and transparent structures and adaptive method stabilization in exchange rate policies to increase stock market patronage, minimize transaction costs, and mitigate the market uncertainties.
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Onisanwa, Idowu Daniel, and Mercy Ojochegbe Adaji. "Stock market development and investment growth in Nigeria." Journal of Economics and Management 42 (2020): 99–117. http://dx.doi.org/10.22367/jem.2020.42.05.
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Aim/purpose – The poor investment climate is one of the reasons advanced for the slow pace of growth in Nigeria; evidenced by the absence or inadequate amount of investible funds in the productive sectors. While the money market in Nigeria provides very limited investment options, the underdevelopment and underutilisation of the Nigerian Stock Market constitute a drawback to the investment climate. However, any economy desiring sustainable development requires a long-term source of fund. Therefore, this study ascertains the perfor-mance of the stock market and investment growth nexus in Nigeria.Design/methodology/approach – The study is based on the neoclassical growth theory with a slight modification in the wake of Levine’s specification (2003), an augmented investment growth relationship was specified. This study utilises the Autoregressive Distributed Lag (ARDL) in establishing the co-integration relation between stock market development and investment growth. Gross capital formation was used as a proxy for investment growth while the stock market indicators are market capitalisation ratio, total value traded ratio and turnover ratio. The study utilises data covering 1981 to 2018, sourced from the Nigerian Stock Exchange annual reports and diverse publication of the Nigerian Bureau of Statistics.Findings – The market capitalisation ratio had a negative impact on gross capital for-mation both in the short run and the long run, but its significance is only evident in the short run. The turnover ratio had a negative and significant impact on investment growth. The total value traded ratio exerted a positive and significant impact on gross capital formation both in the short run and the long run. The coefficient of the error cor-rection term was negative and statistically significant. Research implications/limitations – The total value traded ratio enhanced investment growth in Nigeria. Both market capitalisation and turnover ratio dampen investment growth. The Stock Exchange is not efficient and does not possess the amount of liquidity required to finance long term investment need in Nigeria. Emphasis on measures geared towards increasing efficiency and liquidity should be intensified by the government. Mean-while, the sectorial analysis of the impact of stock exchange movements in Nigeria and the use of other estimation techniques may create room for more robust relationships.Originality/value/contribution – The study directly investigates the capability of the Nigerian stock market in driving investment, both in the short and long run.
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Adekoya, Oluwasegun B. "Portfolio Balance Approach to Asymmetries, Structural Breaks and Financial Crisis: Testing a Model for Nigeria." Central Bank of Nigeria Journal of Applied Statistics, Vol. 11 No. 1 (September 9, 2020): 87–110. http://dx.doi.org/10.33429/cjas.11120.4/5.
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This study tests the Portfolio Balance Theory (PBT) for Nigeria for the period starting from September 1997 to September 2018. It extends the hypothesized linear inverse relationship between exchange rate and stock price to include asymmetries and structural breaks. It further examines the impact of the 2008 global financial crisis on the PBT to determine its stability after the crisis. The full sample results show that the PBT holds for Nigeria and asymmetries and structural breaks matter in the nexus between stock price and exchange rate. However, the impact of stock price on exchange rate diminished in the long-run with the advent of the 2008 global financial crisis, thus eroding the relative consistency of the PBT after the crisis. The sensitivity of the Nigerian exchange rate to stock price changes calls for the strengthening of the stock market performance through relevant policies including the enhancement of portfolio diversification and risk-hedging assets. The role of asymmetries should not also be jettisoned in predicting exchange rate with stock prices to obtain accurate forecast results.
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Abdullahi, Nuruddeen A., and Alan Wakelam. "The Nigerian Stock Exchange and the Private Investor." Journal of Interdisciplinary Economics 6, no. 3 (1995): 183–202. http://dx.doi.org/10.1177/02601079x9500600302.
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The findings of this research suggests that the Nigerian private investors like their counterparts elsewhere (e.g. the U.S.A. and the U.K.) do like both capital appreciation and dividend income. Furthermore, the majority of the respondents preferred to invest in ordinary shares rather than in any other securities on the Stock Exchange. Indeed it was found that other forms of securities, especially the government development stocks or bonds, were little known to the respondents. The majority of the respondents (57.9%, Table 4) appeared to take investment decisions on their own initiative rather than acting on the advice of stockbrokers or other experts, and that they often rely on company reports for market information. This is perhaps due to lack of clear understanding of the role of the stockbrokers in investment advice. The respondents showed a great reliance on three main sources of market information for investment decisions [company reports (34%), stockbrokers/or experts (27%), and the media (27%)]. However, as other authors have shown the average Nigerian investor may not be financially literate, the great reliance on company reports implies that the private investors take investment decisions by guessing at a company’s financial progress and position. The media has shown its value in providing market information and educating the public on matters of investment but there is also a need for enhanced financial journalism in the country. Taxation does not appear to have any significant effect on personal share ownership in Nigeria. The large majority of the respondents showed their ignorance of tax rate on dividends. This may be partly because the tax on dividends was relatively small at the time of the survey (1992) and did not warrant serious consideration by the private investors whose size of share ownership is normally small. The effects of the background characteristics of the respondents, (education and training, portfolio holdings, number of shareholdings, frequency of contact with stockbrokers, and years of experience of share ownership) did have an effect on people’s understanding of listed companies. With the exception of the size of shareholdings and years of experience of share ownership all the presented variables have a significant influence on the respondents’ understanding of listed companies (see Table 9). Training in business and/or finance has no significant influence on the method of taking investment decisions. Both respondents with significant training and those who had little or no training in business and/or finance appeared to rely on their own initiative when taking investment decisions. It is also clear that, although the majority of the respondents expressed their satisfaction with the services rendered by the Stock Exchange, a great many respondents seem to have reservations on the efficacy of the services of the stock exchange and the market in general.
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Igbinovia, Ikponmwosa Michael. "Oil Price Volatility and Stock Market Returns in an Emerging Economy: Evidence from Nigeria." SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS 3, no. 3 (2019): 193. http://dx.doi.org/10.29259/sijdeb.v3i3.193-206.
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The study examines the reaction of the Nigerian stock market to fluctuations in the mainstay of the Nigerian economy. Using time series data sourced from OPEC website and the Central Bank of Nigeria (CBN) Statistical Bulletin, we investigate the effect of oil price volatility on stock market returns in Nigeria during the period 1981 to 2017. Co-integration test established the long run relationship between variables, while, the Error Correction Model (ECM) and Pair-Wise Granger Causality test were used to ascertain the short run dynamics and the direction of causality between the variables of interest. The findings reveal among other things that Oil Price Volatility (OPV) has a non-significant positive effect on Stock Market Return (SMR) both in the short and long run period. Exchange Rate (EXR) and Interest rate (INT) were significant variables that influence stock market return in Nigeria during the period under review.
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Aremu Akinde, Mukail, Eriki Peter, and Ochei Ailemen Ikpefan. "Growth versus value investing: a case of Nigerian Stock Market." Investment Management and Financial Innovations 16, no. 1 (2019): 30–45. http://dx.doi.org/10.21511/imfi.16(1).2019.03.
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At a time, the Nigeria Stock Exchange (NSE) is generally undergoing bearish trends; the paper investigated the performance of eighty-eight (88) sampled stocks, which were screened with the modern Price Earnings Growth (PEG) ratio into the Growth and the Value Portfolios. This is to ascertain whether the Value Portfolio outperformed the Growth Portfolio in terms of returns. From the researches in the developed and emerging stock markets, the momentum supports that the Value Portfolio outscored the Growth Portfolio in terms of returns. The paper explored pooled data from the Factbooks of the Nigerian Stock Market and the Annual Reports across different industries from 1990 to 2016. Descriptive methods and Arellano and Generalized Methods of Moment (GMM) xtabond2 were adopted to address the outliers, reverse causality and other related consequences of panel data. Similar to the findings from the developed and emerging stock markets, the study recognized that the Value Portfolio over-performed the Growth Portfolio in terms of returns in the NSE. Therefore, it is recommended that rational investors should show more preferences to invest in low-priced Value Stocks to earn higher returns than the high-priced Growth Stocks, which generated lower returns in the NSE.
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Cordelia Onyinyechi, Omodero, and M. C. Ekwe. "Impact of Foreign Direct Investment (Fdi) On the Stock Market Performances in Nigeria (1985-2014)." Applied Finance and Accounting 3, no. 1 (2016): 36. http://dx.doi.org/10.11114/afa.v3i1.1932.
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The study examined the impact of Foreign Direct Investment (FDI) on the stock market performances in Nigeria, from 1985 – 2014. The secondary data used were collected from IMF, International Financial Statistics (2015), CBN Statistical Books (2015). Multiple regression of least square estimation was the tool used to analyze the data in this study. In the model, the FDI was regressed on RGDP, Consumer Price Index, Real effective exchange rate, Money supply (M2), Share price index, Treasury bill, Nigerian stock exchange transactions. The study revealed that FDI has an insignificant and negative impact on the economy and the macroeconomic variables that determine the performances of the Nigerian stock market. The paper therefore recommends policies that would encourage foreign firms operating in the oil and gas including the telecommunication and agricultural sectors to be listed since it would go a long way in attracting more FDI, leading to improvement in the stock market performances.
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Olugbenga Adaramola, Anthony, and Kehinde Oladeji Adekanmbi. "Day-of-the-week effect in Nigerian stock exchange: adaptive market hypothesis approach." Investment Management and Financial Innovations 17, no. 1 (2020): 97–108. http://dx.doi.org/10.21511/imfi.17(1).2020.09.
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The problems that this study informed are rooted in the uncertainty surrounding the presence of calendar anomalies in the Nigerian stock market and the need to ascertain whether calendar anomaly is changing with time and market condition according to the adaptive market hypothesis. This study evaluates how calendar anomaly behaves over time in the Nigerian stock market through the day-of-the-week effect since the latest trend is to examine time-changing anomaly. The general All Share Index returns of the Nigerian Stock Exchange between 2000 and 2017 are used in the analysis. Secondary daily index returns data for the period are sourced from the NSE Fact Book. The major estimation techniques employed in the study are the mean equations of the generalized autoregressive conditional heteroscedasticity (GARCH) and overlapping sub-period methodology. Moreover, returns are grouped into Up and Down periods depending on the periods that generate positive and negative returns, respectively. This study found out that Monday (MON), Tuesday (TUE), and Friday (FRI) effects are the only adaptive day-of-the-week effects. Thus, three (MON, TUE, FRI) day of the week effects found in the full sample are time-varying in subsample and are affected by market condition. On the whole, MON and Thursday (THUR) effects are found in Bull, while TUE and FRI are found in Bear. The investor must be careful to take time-variation into consideration; otherwise, they may incur a loss by thinking that the day-of-the-week effect is present every time.
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Abbas, Aqeel, Sajjad Ahmad Baig, Muhammad Zia-ur-Rehman, and Muhammad Abrar. "Risk Comparison of Karachi Stock Exchange with Next Eleven Countries: A Country Beta Approach." International Journal of Accounting and Financial Reporting 4, no. 1 (2014): 202. http://dx.doi.org/10.5296/ijafr.v4i1.5716.
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This study is based on the Country risk of different stock exchanges of the world. Here Country risk is derived from the Country Beta Approach, as this approach is described by the Erb, Harvey and Viskanta (1996). Specifically, this study is based on the risk comparison of KSE 100 with next eleven countries (South Korea, Iran, Mexico, Philippine, Indonesia, Turkey, Egypt, Nigeria, Pakistan, Vietnam and Bangladesh), which are defined by the Goldman Sachs (2005). For this purpose, the stock exchange's data of these countries is compared with the global index. Actually, the global index is consisted on the 44 countries of the world. Here only one factor is discussed, which is a country risk (country beta). Actually the riskiness is measured in this study on the basis of beta, higher the beta means higher the risk; lower the beta means low the risk. The result shows that the performance of KSE is much better than the next eleven economies but Nigerian stock exchange has less risk than the KSE 100.
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EBOIGBE, Sharlywest Uwabor, and Kennedy Prince MODUGU. "Stock Market Reaction to Election Cycles: The Nigerian Experience." Journal of Accounting and Finance in Emerging Economies 4, no. 1 (2018): 63–76. http://dx.doi.org/10.26710/jafee.v4i1.345.
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This study seeks to unravel the relationship between national electoral events and industry’s stock market returns using the various presidential elections in Nigeria. The study adopts the traditional Market Model (MM) and testing with the Cumulative Abnormal Return (CAR) approach on the daily market data from the Nigerian Stock Exchange. Evidences abound that banking and Petroleum sector decreases before and increases after all elections. With the same trend for other sectors such as Conglomerates stock prices which oscillated in the same direction for the1999 and 2003; Brewery took their turn 1999 and 2011 while building sector experienced this event effect in 1999, thereby revealing industry connectivity with political activities. This manifests as their stock returns tend to reduce generally before and increase after election periods. We therefore recommend the depoliticization of public policies through strict adherence to corporate governance codes and strengthening of public institutions. This will put a check on the political manoeuvrings of the economy by boosting investors’ confidence on the market regardless of electoral activities and power swings. More importantly, for those stocks that experiences increase in value after election it is a better time to sell those portfolios and buy these stocks that experience loss in value at a post-election window.
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Idowu, Onanuga, Ilo Bamidele, and Lucas Elumah. "Monetary and Fiscal Policies Interactions on Stock Returns in Nigeria." Binus Business Review 11, no. 1 (2020): 17–24. http://dx.doi.org/10.21512/bbr.v11i1.6082.
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This research examined the effects of monetary and fiscal policies on stock returns in Nigeria. The researchers utilized ex-post facto research design using the time series data of the annual market values of All Share Index (ASI) of the Nigerian Stock Exchange (NSE). It was yearly data on the various monetary policy and fiscal policy variables obtained from the Central Bank of Nigeria Statistical Bulletins covering from 1985 to 2017. The result of the cointegration test reveals a long-run relationship between monetary variables and stock returns. Meanwhile, the overall result shows that monetary policy has a significant effect on stock return. However, there is no long-run relationship between fiscal policy variables and stock returns. Meanwhile, the result of the Unrestricted Vector Autoregression model shows that fiscal policy has a significant effect on stock prices in Nigeria. On the other hand, a long-run relationship exists between monetary policy, fiscal policy, and stock returns. It has a significant effect on stock returns in Nigeria. This implies that monetary and fiscal policies have a significant effect on stock returns in Nigeria. It is recommended that there is a need for the federal government to harmonize fiscal and monetary policies in the same direction and to equally design policies that promote a free market for the growth of the Nigerian economy.
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Nwaubani, Anthony Nzeribe, and Cyprian Okey Okoro. "Adoption of International Financial Reporting Standards (IFRS) and Assets Quality in the Nigerian Banking Sector: The Fundamental Effect Approach." Journal of Public Management Research 4, no. 2 (2018): 11. http://dx.doi.org/10.5296/jpmr.v4i2.14098.
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The main purpose of this work is to examine the effect of the adoption of international financial reporting standards (IFRS) on assets quality in the Nigerian banking sector. Specifically the study sought to determine the effect of the adoption on asset quality, loan volume, , net interest income and profit after tax of deposit money banks listed on the Nigerian Stock Exchange. The adopted research design is causal-comparative. Secondary data on ten out of sixteen listed deposit money banks on the Nigerian Stock Exchange by June 2018 were used. The banks which were selected via judgmental sampling technique were those whose annual financial statements for the immediate year before IFRS adoption year were available and contained figures under Nigerian GAAP/SAS and IFRS-equivalent. The data which were analyzed using paired student t-test approach were sourced from 2011 and 2012 annual reports of the selected banks except Zenith bank for which only 2011 annual financial reports were used.. The variables of interest were grouped under Nigerian GAAP (SAS) and IFRS. Findings revealed that overall, the IFRS adoption indicates negative insignificant effect on assets quality of deposit money banks in Nigeria. The study therefore, recommends inter-alia that Financial Reporting Council of Nigeria should partner with the CBN to provide clarity on areas of regulatory hindrance to full and effective implementation of the IFRS with regular.
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EVBAYIRO-OSAGIE, Esther Ikavbo. "An Analysis of Stock Market Anomalies: Evidence from the Nigerian Stock Exchange." Journal of Business Management and Economic Research 1, no. 1 (2018): 45–66. http://dx.doi.org/10.29226/tr1001.2018.65.
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Ranti Uwuigbe, Olubukola, Uwalomwa Uwuigbe, Jimoh Jafaru, Ebeguki Edith Igbinoba, and Olufemi Adebayo Oladipo. "Value relevance of financial statements and share price: a study of listed banks in Nigeria." Banks and Bank Systems 11, no. 4 (2016): 135–43. http://dx.doi.org/10.21511/bbs.11(4-1).2016.04.
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This paper examined the effects of value relevance of financial statements on firms share price in Nigeria. In achieving the objectives of this research, the fact book from the Nigerian Stock Exchange Market and the audited financial statement of listed banks spanning the period 2010-2014 were used. Also, a total of 15 listed banks in the Nigerian stock exchange market were selected and analyzed for the study using the purposive sampling method. However, in analyzing the research hypotheses, the study adopted the use of both descriptive statistics and the use of Fixed Effects Panel data method of data analysis technique. Findings from the study showed that a significant positive relationship existed between earnings per share (EPS) and Last day share price (LDSP). The study recommends the need for banks in the country to improve on the quality of earnings reported, since it has a stronger ability to explaining share prices of firm. Keywords: value relevance, financial statements, Nigerian, earnings per share, last day share, price, book value per share, accounting information. JEL Classification: M41, G21
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Chukwu Agwu, Ejem, Ogbonna Udochukwu Godfrey, and Okpara Godwin Chigozie. "Efficient Market Hypotheses Controversy and Nigerian Stock Exchange Relations." International Journal of Accounting, Finance and Risk Management 5, no. 3 (2020): 131. http://dx.doi.org/10.11648/j.ijafrm.20200503.12.
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Niyi A., Aguda. "A Test of Asymmetric Volatilityin the Nigerian Stock Exchange." International Journal of Economics, Finance and Management Sciences 4, no. 5 (2016): 263. http://dx.doi.org/10.11648/j.ijefm.20160405.15.
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Toby, Adolphus, and Glory Austen. "Volatility Modelling of Stock Returns in the Petroleum Marketing Sector of the Nigerian Stock Exchange." American Journal of Finance 6, no. 1 (2021): 71–97. http://dx.doi.org/10.47672/ajf.777.
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Introduction: Financial markets play key role in the growth and sustainability of the economy. However, high levels of volatility in the markets may adversely affect the financial system and weaken the economy.
 Purpose: This paper examined the presence of volatility in the stock returns of the petroleum marketing sector of the Nigerian Stock Exchange using ten petroleum marketing firms quoted on the Nigerian Stock Exchange for a period of twenty-four months that is from January 2017 to December 2018.
 Methodology: The study adopted empirical research design using time series data where ordinary least squares was employed to run the analysis through the use of ARCH/GARCH models.
 Findings: Among other results, it was seen that a unit increase in volatility (VLT) will lead to 0.006916 decrease in stock returns (STR). Also, the result of R-squared implies that about eight per cent (8%) of the changes in stock returns (STR) is captured by volatility (VLT) while the remaining ninety-two per cent (92%) of the variation in the model is captured by the error term. The ARCH effect observed is statistically significant. The coefficient of the GARCH effect which is significantly positive at 5% shows that past volatility of stock market return is significant and has effect on current volatility.
 Unique Contribution to theory, Practice and Policy: The implication of this is that an increase in volatility is linked to a significant increase of returns, which is an expected result and thus conforms to economic theory. The results of static and dynamic forecasting of GARCH volatility showed that the volatility is stable. As a result, investors can hold the stock. Among other things, the author recommends that Government should make sufficient regulatory effort that will improve efficiency of stocks performance and reduce volatility aimed at boosting investors’ confidence in the petroleum marketing sector and since the various ARCH and GARCH models showed volatility movement in stock returns, Nigerian government should look for new ways to diversify the economy from dependence on oil and explore other sectors like manufacturing sector and agricultural sector to reduce volatility in the economy and the overall effect on it.
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Oriakhi, Solomon. "Board Gender Diversity as Corporate Governance Variable: The Influence On Audit Quality." Journal of Accounting and Finance in Emerging Economies 6, no. 3 (2020): 775–85. http://dx.doi.org/10.26710/jafee.v6i3.1318.
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This study examines the influence of gender diversity on audit quality of manufacturing firms listed on Nigeria Stock Exchange for the period 2010 – 2018. The specific objective of the study is to investigate the influence of gender diversity as corporate governance variable on audit quality of listed manufacturing firms in Nigeria. Secondary data were collected from the audited annual reports of fifty eight (58) manufacturing firms listed on the Nigerian Stock Exchange and binary regression models (logit, probit and gombit) were used to test the hypothesis. The result revealed that gender diversity has positive significant influence on audit quality for the full sample. The study recommend that firms should endeavor to diversity their board along gender line in order to appropriate the benefit of females directors.
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E., Appah, and Onowu J.U. "Integrated Reporting Disclosures and Firm Value of Listed Insurance Companies in Nigeria." African Journal of Accounting and Financial Research 4, no. 2 (2021): 55–76. http://dx.doi.org/10.52589/ajafr-wqiakpzy.
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This study empirically investigated integrated reporting and corporate financial performance of listed insurance companies in Nigeria for the period 2010 to 2019. The study employed ex post facto and correlational research design. The sample size of the study consisted of insurance firms listed on the Nigerian Stock Exchange. The data for the study was obtained from the published annual financial statements of the sampled insurance companies and descriptive statistics, diagnostic test, unit root test, was used for data analysis while multiple regression analysis for the test of hypotheses. The result from the regression analysis revealed that integrated reporting positively and significantly affects the corporate financial performance of listed insurance firms in Nigeria. Also the control variables of debt, liquidity, corporate size and risk suggested both negative and positive significant influence on corporate financial performance of listed insurance firms in Nigeria. The paper concluded that integrated reporting affects the corporate financial performance of listed insurance companies in Nigeria. Therefore, the paper recommends amongst others that the Financial Reporting Council of Nigeria (FRCN) should make the adoption of integrated reporting compulsory across companies listed on the Nigerian Stock Exchange in a bid to improve the relationship between integrated reporting and financial performance of firms.
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Kuhe, DA, and J. Akor. "An Empirical Investigation of the Random Walk Hypothesis in the Nigerian Stock Market." NIGERIAN ANNALS OF PURE AND APPLIED SCIENCES 4, no. 1 (2021): 62–77. http://dx.doi.org/10.46912/napas.229.
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The Random Walk Hypothesis (RWH) states that stock prices move randomly in the stock market without following any regular or particular pattern and as such historical information contained in the past prices of stocks cannot be used to predict current or future stock prices. Hence, stock prices are unpredictable and that investors cannot usurp any available information in the market to manipulate the market and make abnormal profits. This study empirically examines the random walk hypothesis in the Nigerian stock market using the daily quotations of the Nigerian stock exchange from 2nd January, 1998 to 31st December, 2019. The study employs Augmented Dickey-Fuller unit root test, the random walk model, Ljung-Box Q-statistic test for serial dependence, runs test of randomness, and the robust variance ratio test as methods of analyses. The result of the study rejected the null hypotheses of a unit root and random walk in the stock returns. The null hypothesis of no serial correlation in the residuals of stock returns was also rejected indicating the presence of serial correlation/autocorrelation in the residual series. The result of the runs test rejected the null hypothesis of randomness in the Nigerian stock returns. The results of the variance ratio test under homoskedasticity and heteroskedasticity assumptions both strongly rejected the null hypothesis of a random walk for both joint tests and test of individual periods. Based on the results of the four tests applied in this study, it is concluded that the Nigerian daily stock returns under the period of investigation do not follow a random walk and hence the null hypothesis of a random walk is rejected. The results of the study further revealed that the Nigerian stock market is weak-form inefficient indicating that prices in the Nigerian stock market are predictable, dependable, consistently mispriced, inflated, liable to arbitraging and left unprotected to speculations and market manipulations. The study provided some policy recommendations
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Anifowose, Mutalib, Hafiz Majdi Abdul Rashid, Hairul Azlan Annuar, and Hassan Ibrahim. "Intellectual capital efficiency and corporate book value: evidence from Nigerian economy." Journal of Intellectual Capital 19, no. 3 (2018): 644–68. http://dx.doi.org/10.1108/jic-09-2016-0091.
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Purpose The purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysing the relationship between IC efficiency (ICE) and corporate book value of listed firms on main board of Nigeria Stock Exchange. Design/methodology/approach This study applies the resource-based theory in formulating two hypotheses that guide the results analysis. By employing a two-step dynamic system generalised method of moments (GMMs), and controlling for the possible endogeneity effect on the parameters estimated, for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of ICE and corporate book value, namely, cash flow from operation and economic value added (EVA), using data over the 2010 to 2014 financial years. Findings The results show a significant positive relationship between overall ICE and corporate book value (cash flow from operation and EVA). This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders. Research limitations/implications The generalisation of the results to smaller firms, in the alternative securities market, may be inappropriate as study sampled listed firms on the main board of Nigerian Stock Exchange. Practical implications Those charged with governance should be concerned with the investment and management of IC as it enhances the economic value and operating cash flow in line with the resource-based theory. Originality/value This study is first to consider the ICE study across all sectors in the Nigerian economy using modified Pulic value added intellectual capital. The study controls for heteroscedasticity and endogeneity issues by adoption of two-step dynamic system GMMs.
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Uwuigbe, Olubukola Ranti, Olayinka Adedayo Erin, Uwalomwa Uwuigbe, Daramola Sunday Peter, and Olugbenga Jinadu. "International financial reporting standards and stock market behaviour: An emerging market experience." Corporate Ownership and Control 14, no. 4 (2017): 93–102. http://dx.doi.org/10.22495/cocv14i4art8.
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This paper examined the impact of IFRS on stock market behaviour in the financial and consumer goods sector of the Nigerian economy. The study addresses the research questions by using a sample of 52 selected listed companies (30-financial sector and 22-consumer goods sector) on the Nigeria Stock Exchange. Secondary data source was used to investigate the impact of IFRS adoption on stock market behaviour. The methods used in analysing the impact of IFRS on stock market behaviour were General Linear Model (GLM) and Fixed Effects Model (FEM). Findings from the study show that IFRS adoption has improved the trading volume activities of listed firms in Nigeria. It equally observes that there is no significant relationship between IFRS adoption and stock price informativeness. This study recommends that regulatory bodies in the country should ensure that the companies listed on the Stock Exchange comply strictly with the IFRS implementation because this will help the investors of those companies have relevant information regarding stock market indices. Also, there is a need for the stock market to be efficient so that there will be easy access to information on the stock market on a timely basis so that investors can take a timely and prompt decision.
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Udochukwu Godfrey, Ogbonna, and Ejem Chukwu Agwu. "Exchange Rate Management and Regime: Quo Vadis Nigeria?" International Journal of Economics and Financial Research, no. 512 (December 20, 2019): 282–91. http://dx.doi.org/10.32861/ijefr.512.282.291.
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This study investigated a pertinent question on the lips of every Nigerian; exchange rate regime, Quo Vadis Nigeria? Nigeria, Quo Vadis (where do we go)? under two alternative managed floating regimes; Dutch Auction System and post Dutch Auction System regimes, within the Autoregressive Distributive Lag methodology using monthly data covering from July 2002 to July 2017. The results for the full sample show that none of the selected macroeconomic variables has a significant short run relationship with the nominal effective exchange rate. In the long run, all the variables, except interbank rate, show negative relationship with nominal effective exchange rate. However, while the effects of oil prices, interbank rate and the prime lending rate are significant, the effects of inflation and stock prices are insignificant. The results for the Dutch Auction System sample show little evidence of a negative short run relationship between nominal effective exchange rate and inflation while oil prices, prime lending rate, interbank rate and stock prices all show no evidence of a short run relationship with exchange rate. On the contrary, oil prices, prime lending rates and stock prices all show significant negative long run relationship with nominal effective exchange rate. The results for the post Dutch Auction System sample show evidence of a positive short run relationship between stock prices, interbank rate and nominal effective exchange rate. On the other hand, inflation, oil prices and prime lending rate show no short run relationship nominal effective exchange rate. However, there is evidence of a lagged positive relationship between inflation and nominal exchange rate. The cointegration test for post Dutch Auction System sample gives inconclusive results. We therefore, conclude that the choice of exchange rate regime matters for macroeconomics performance in Nigeria and that the closure of the Dutch Auction system by the monetary authorities significantly altered the relationship between nominal exchange effective exchange rate and macroeconomic variables.
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Musa, Tijjani Bashir. "Company fundamentals and stock price movements: The role of crude oil prices – Evidence from Nigerian Stock Exchange (NSE)." Journal of Research in Emerging Markets 3, no. 1 (2020): 1–13. http://dx.doi.org/10.30585/jrems.v3i1.532.
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This study analyzed company fundamentals on how it relates and predict stock price movements and the extent of the role of oil prices in moderating the influence of these company fundamentals in stock price movements. The study covered the period of 2014 to 2018. The study is a panel study. A total of 132 companies were sampled from 196 companies listed on the Nigerian Stock Exchange (NSE) as of December 2018. Data were collected from a secondary source. Multiple linear regression models were used to analyze the data. The study found that a relationship exists between selected companies' fundamentals and stock prices, and oil prices moderate the relationship. But EPS and Working Capital have high predictive power on stock price movements but moderating with oil prices the influence reduces significantly. The study recommends among others that Managers of companies in Nigeria should formulate policies and exert effort geared towards improving company fundamentals in the event of oil prices increases.
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Ubesie, Madubuko Cyril, and Matthew Emeziem Ude. "Responsiveness of Capital Market on the Output of Manufacturing Firms in Nigeria." International Finance and Banking 6, no. 1 (2019): 17. http://dx.doi.org/10.5296/ifb.v6i1.14693.
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Capital market provides the necessary lubricant that keeps turning the wheel of the economy. It does not only provide the funds required for investment but also efficiently allocates these funds to projects of best returns to investors. This study empirically examined the responsiveness of capital market on productivity (Output) of manufacturing firms in Nigeria (1990 – 2016). Specifically, the study examined the impact of Market capitalization, Total listed equities and All Share Index on the productivity (Output) of manufacturing firms in Nigeria. Annual time series data obtained from the Central Bank of Nigeria (CBN) statistical bulletin, 2016 edition was utilized. The study adopted the ex-post facto research design and employed the Autoregressive Distributed Lag (ARDL) bound test approach. The findings revealed that capital market indices of the Nigerian Stock Exchange (proxy by MCAP, TLE, and ASI) have long-run significant influence on the productivity of manufacturing firms in Nigeria. Based on these findings, it was recommended among others that there is need to restore confidence to the market by regulatory authorities through ensuring transparency and fair trading transaction and dealings in the stock exchange which in turn will help to improve economic growth in Nigeria; also that the private sector should be encouraged to invest in capital market to boost productivity (Output) and improve the growth of Nigerian economy.
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UFOEZE, Lawrence Olisaemeka, Camilus OKUMA, N., Clem NWAKOBY, and Udoka Bernard Alajekwu. "EFECT OF FOREIGN EXCHANGE RATE FLUCTUATIONS ON NIGERIAN ECONOMY." Annals of Spiru Haret University. Economic Series 18, no. 1 (2018): 105–22. http://dx.doi.org/10.26458/1814.
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This study investigated the effect of exchange rate fluctuations on Nigerian economy. The fixed and floating exchange eras were compared to know the exchange rate system in which the economy has fairly better. The time period covered was 1970 to 2012. The study employed the ordinary least square (OLS) multiple regression technique for the analysis. The coefficient of determination (R2), F-test, t-test, beta and Durbin-Watson were used in the interpretation of the results. The resulted revealed that about 85% of the changes in macroeconomic indicators are explained in the fixed exchange era. In the floating exchange era, 99% was explained while the whole periods has 73% explanatory power, hence the floating exchange era (1986 to date) is more effective in explaining economic trend in Nigeria. Also, exchange rate has significant positive effect on GDP during the fixed exchange rate era and negative effect the eras floating and all-time; inflation has insignificant negative effect on GDP during the fixed exchange era; significant effect in floating era and significant negative effect in the all-time period; money supply has insignificant negative effect GDP in fixed exchange era; and significant positive effect during the floating and all-time period; and oil revenue has significant positive effect on the GDP in all the exchange rate regimes (floating, fixed and all-time) in Nigeria. The study thus conclude that exchange rate movement is a good indicator for monitoring Nigerian economic growth. So far exchange rate has always been a key economic indicator for Nigeria. The floating exchange period has outperformed the fixed exchange rate in terms of contribution inflation, money supply and oil revenue to economic growth. This indicate that the floating exchange rate has been a better economic regime for sustainable economic growth in Nigeria. From the findings, it is evident that oil revenue has positive effect in Nigeria and has remained the mainstay of the economy. It is thus recommended among other things that a positive exchange rate stock should be monitored regularly, so as not to allow those that find exchange rate as an avenue of investment like banks and public carry out their business, which is more devastating to the economy.
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T. G., Afolabi, Njogo B. O, Areghan I. A, Olugbenle A.H, and Olusesi H.O. "Capital Asset Pricing Model: Evidence from the Nigerian Stock Exchange." International Journal of English Literature and Social Sciences 2, no. 6 (2017): 155–60. http://dx.doi.org/10.22161/ijels.2.6.23.
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Olawumi, Ojo Rufus, and Sola Ogungbenle. "A Dynamic Panel Analysis of Drivers of Output Growth in the Nigerian Manufacturing Firms." European Scientific Journal, ESJ 14, no. 19 (2018): 222. http://dx.doi.org/10.19044/esj.2018.v14n19p222.
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Regardless of the efforts of government to revamp the manufacturing sector in Nigeria, the sub-sector has remained ineffective with dwindling output and there have been consistent fluctuations in the share of the manufacturing sub-sector to Gross Domestic Product (GDP) in Nigeria. This study therefore examines the determinants of output growth in the Nigerian formal manufacturing sub-sector. The study made use of fifty (50) formal manufacturing firms listed in the Nigerian Stock Exchange Data for the formal manufacturing firms were sourced from the Nigeria Stock Exchange (NSE) Fact Book and the Central Bank of Nigeria Statistical Bulletin 2014. The estimated models in the study were specified following the works of Sangosanya (2011). The study employed the dynamic panel data analysis (the dynamic models of the Generalized Method of Moments (GMM) and the Systemic Generalized Method of Moments (SYSGMM)) for the Nigerian formal manufacturing sub-sector. The study showed that the coefficient of operating efficiency in the GMM&SYSGMM estimate, i.e. -0.0349214 and -0.0199787 respectively showed a negative relationship between OPREF and firms’ growth. This implied that information supplied by firms about their growth indicators is at variance with their performance. This further speaks volume of the weakness of regulatory agencies to effectively monitor the performance of manufacturing firms in Nigeria. Also, the study showed that exchange rate, bank efficiency and managerial efficiency have significant positive relationship with output growth of firms. Also variables such as degree of financial development, energy infrastructural facilities and government regulations and policy have significant negative impact with output growth of firms in Nigeria. Findings revealed that all the explanatory variables identified in the study are strong determinants of firm growth in the Nigerian manufacturing sub-sector. The study recommended among others that government should formulate and implement policies that would hinder formal manufacturing firms from publishing fake report of their growth. Also, government should formulate and implement policy measures that would make imported goods more expensive and appropriate monetary policies that would make the cost of borrowing from banks (interest rate) affordable should be priotised in Nigeria.
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Abbas, Usman. "The Moderating Effect of Gender on Audit Committee Attributes and Earnings Management." Scholedge International Journal of Business Policy & Governance ISSN 2394-3351 7, no. 3 (2020): 48. http://dx.doi.org/10.19085/sijbpg070302.
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There exist a number of studies that have been conducted on the influence of audit committee attributes on earnings management but no attention has been given to the moderating effect of gender on audit committee attributes and earnings management. The main objective of this study was to examine the moderating effect of gender on the impact of audit committee attributes on earnings management of listed Agricultural companies in Nigeria for a period of six years (2012-2017). The study used ex-post facto and correlational research designs. The population of the study was the five (5) Agricultural companies in Nigeria listed on the Nigerian Stock Exchange as of 31st December 2017 and all the companies were used as a sample of the study. The study used a panel of multiple regression techniques for data analysis. It was found that gender has a strong and significant influence on the impact of audit committee attributes on earnings management of listed Agricultural companies in Nigeria. It was recommended that the audit committee of companies in Nigeria should comprise of at least 40% of women. Regulatory bodies concerned in Nigeria like Securities and Exchange Commission, Nigerian Stock Exchange and Financial Reporting Council should clearly state the composition of audit committee members and increase the number to ten where women should form 40% of the members of the committee and a woman with financial knowledge should be made the chairperson of the committee since women have shown a significant level of commitment to their responsibilities and contribute in reducing earnings manipulation.