Capital Market Performance Indicators and Economic Growth in Nigeria
- March 15, 2019
- Posted by: RSIS
- Category: Banking & Finance
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue II, February 2019 | ISSN 2454–6186
Capital Market Performance Indicators and Economic Growth in Nigeria
Kenneth Ogbeide ENORUWA1, Moyotole Daniel EZUEM2, Onyemaechi Christopher NWANI3
1Department of Banking & Finance, University of Nigeria, Nsukka, Nigeria
2,3Department of Banking and Finance, Federal University Wukari, Taraba State, Nigeria
Abstract:-This work examines the impact of the capital market on the economic growth of Nigeria. Data sample of 31years from 1985 to 2015 was extracted from the Central Bank of Nigeria Bulletin and the linear regression method of econometric analysis was used for the study. To capture the capital market, we employed market capitalization, all share index, trade volume and trade value while GDP at current basic price was used as proxy for the Nigerian economy. The major findings of the research reveal that all predictors exhibit a significant relationship with economic growth in Nigeria at 5% level of significance and show a high degree of correlation with the dependent variable except number of deals and value of deals which displayed a fair correlation with the dependent variable. The study suggests that the capital market will need to embrace innovation and adopt fairness in information management in other to attract investors and the confidence of the investing public.
Keywords: Nigeria Capital Market, Market Capitalization, All Share Index, Number of Deals.
I. INTRODUCTION
The Nigerian Capital operating under Nigeria Stock Exchange is a major player in the market for sourcing long term funds and exchange of securities. The instruments traded in the capital market are referred to as capital market instruments. They are usually securities with life span above one year. The Nigerian Stock exchange is the cen¬ter point of the Nigerian Capital Market. It provides a mechanism to mobilize private and public savings as well as making such funds available for productive purposes (Olusegun, Oluwatoyin, & Fagbeminiyi, 2011).
The financial system is large, broad and consist quite a lot of financial institutions. Some of the institutions that male up the financial system in Nigeria include the Central Bank, Commercial banks, Pension Fund Administrators, Discount Homes, Mortgage Houses, Brokerage Firms, Mutual fund Houses, and The Nigeria Stock Exchange.
