Stock Market Development and Long-Run Growth in Nigeria

Osinubi, Tokunbo Simbowale; Amaghionyeodiwe, Lloyd Ahamefule

doi:10.1300/j156v04n03_06

Cited by 47 publications

(32 citation statements)

References 13 publications

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“…The total market capitalization and all share index exert insignificant positive influence on GDP growth rate while the total value of stock has insignificant negative effect on economic growth. The implication of the result is that an increase in market capitalization and all share index will insignificantly increase GDP, and this is supported by Osinubi and Amaghionyeodiwe (2003), Abu (2009), Agarwal (2001), Chinwuba and Amos (2011) and Ewah et al (2009), who in their different studies, found that capital market has positive impact on economics growth in Nigeria. Ewah etal (2009) made it abundantly clear that although capital market exerts positive influence on economic growth, it has not contributed meaningfully (significantly) to the growth of the Nigerian economy.…”

Section: Model Analysismentioning

confidence: 89%

“…The result indicates that the performance of the capital market impact positively on the economic growth of Nigeria. Osinubi and Amaghionyeodiwe (2003) examine the relationship between Nigeria stock market and economic growth during the period 1980 to 2000, using Ordinary least square regression. The results show that there is a positive relationship between the stock market development and economic growth.…”

Section: Review Of Related Literature Theoretical Frameworkmentioning

confidence: 99%

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The Impact of Capital Market on the Growth of the Nigerian Economy Under Democratic Rule

Nwaolisa¹,

Kasie²,

Egbunike³

2013

AJBMR

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This study seeks to examine the impact of capital market on the growth of the Nigerian economy under a democratic rule. Despite the popular belief that democracy promotes investmentsfriendly environment, the Nigerian capital market seems not to have lived up to expectation in terms of its contribution to economic growth. The study relies on time series data, multivariate regression method was used to analyze the data. The result shows that while total market capitalization and all share indexes exert positive influence on the GDP growth rate, the total value of stock has a negative effect on the GDP growth rate, and none is significant. The study therefore recommends that government should depict concerted effort and sincerity of purpose in the capital market development.

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Section: Model Analysismentioning

confidence: 89%

Section: Review Of Related Literature Theoretical Frameworkmentioning

confidence: 99%

The Impact of Capital Market on the Growth of the Nigerian Economy Under Democratic Rule

Nwaolisa¹,

Kasie²,

Egbunike³

2013

AJBMR

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“…In recent times there was a growing concern on the role of stock market in economic growth (Levine and Zervos, 1996;Demirguc-Kunt and Levine, 1996;Oyejide, 1994;Nyong, 1997;Obadan, 1998;Onosode, 1998;Emenuga, 1998;Osinubi, 1998). The stock market is of interest to economists and policy makers because of the perceived benefits to the economy.…”

Section: Introductionmentioning

confidence: 99%

The impact of inflation on stock market performance in Nigeria

Daferighe¹,

Charlie²

2012

AJSMS

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The stock market is an economic institution that promotes the growth and development of the economy of a nation. This paper investigated the impact of inflation on stock market performance in Nigeria using time series data for twenty years from 1991 -2010.The regression analysis was used to evaluate the influence of inflation on various measures of stock market performance; market capitalization (MCAGDP), total value traded ratio (TVMS), percentage change in All-share Index (%ΔASI) and turnover ratio (TOR). It was revealed that these measures were negatively related to inflation in convergence to a priori expectation except for TOR which showed a positive relationship. This seemly low level of influence of inflation ranging between 14.6% and 0.3% revealed that stock market investments are regarded as a good hedge against inflation in Nigeria. However, the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) should engage in public enlightenment and improve on corporate governance framework to encourage more investment and improve transactions in the market considering its present low level of activities. It was recommended that the Central Bank of Nigeria (CBN) should formulate and use policy statements that will maintain inflation at low ebb in order not to erode the value of gains by investors on stock.

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“…The question that arises here is one of minimizing the asymmetric information between the creditors and managers of manufacturing firms. As noted by Osinubi and Amaghionyeodiwe (2003), this requires the setting up of regulatory bodies with legal powers to enforce the rights of investors. Furthermore, regulations that ensure that firms publish timely and accurate information in their accounts, as well as the provision of competent and trusted auditors, will help reduce the potential costs of financial distress for external investors.…”

Section: Discussionmentioning

confidence: 99%

Business Risk, Industry Affiliation, and Corporate Capital Structure: Evidence From Publicly Listed Nigerian Companies

Nwachukwu

Mohammed

2012

Journal of African Business

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This study demonstrates the extent to which changes in business risk help predict the capital structure choices of Nigerian listed companies. The findings support a U-shaped function with leverage ratio decreasing with earnings volatility, but only up to a cut-off point of 32% per annum. The results are consistent with agency cost models, which predict an escalation in the conflicts between shareholders and firm managers beyond a certain level of volatility with a subsequent increase in the equity risk premium. The expected rise in the cost of equity capital gives debt priority and helps avoid potential underinvestment.

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Stock Market Development and Long-Run Growth in Nigeria

Cited by 47 publications

References 13 publications

The Impact of Capital Market on the Growth of the Nigerian Economy Under Democratic Rule

The Impact of Capital Market on the Growth of the Nigerian Economy Under Democratic Rule

The impact of inflation on stock market performance in Nigeria

Business Risk, Industry Affiliation, and Corporate Capital Structure: Evidence From Publicly Listed Nigerian Companies

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