Izekor, Andrew Osaretin and Chijuka, Ify ORCID: https://orcid.org/0009-0006-1043-5018 (2023) Macroeconomic indicators and the Nigerian capital market performance: short run and long run analyses (2000 - 2021). African Banking and Finance Review Journal (ABFRJ), 6 (6). pp. 1-17.

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Abstract

This study empirically tests for short-run and long-run connection between exchange rate, inflation rate and market capitalisation. Data for the study were collected from the Nigerian central bank data base. The ex-post facto research design was employed using the time series econometric techniques, to perform the diagnostic tests and inferential analyses of the data. Based on the data analyses, the study revealed positive and insignificant connection between exchange rate and market capitalisation, which implied that the continuous depreciation of the naira to the dollar have positive and inconsequential influence on the Nigerian capital market at both the short run and the long run. The result as well revealed negative and insignificant connection between inflation rate and market capitalisation, which implied that the continuous increase in the rate of inflation would adversely but with inconsequential influence on the Nigerian capital market at both the short run and long run. The study strongly recommends for government to ensure that all relevant policy institutions should be active and effective in making regular systemic inflation checks and appropriate inflation policy innovations, to ensure that financial market induced performance are built around effective capital market system.

Item Type:	Article
Uncontrolled Keywords:	capital market; indicators; inferential; macroeconomic; Nigerian
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group:	Faculty of Business
Last Modified:	24 May 2024 10:17
URI:	http://gala.gre.ac.uk/id/eprint/47253

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