This study investigates the empirical relationship between Foreign Direct Investment and economic... more This study investigates the empirical relationship between Foreign Direct Investment and economic growth in Nigeria. The work covered a period of 1981-2009 using an annual data from Central Bank of Nigeria statistical bulletin. A growth model via the Ordinary Least Square method was used to ascertain the relationship between FDI and economic growth in Nigeria. The study also added Gross Fixed Capital Formation with a view to capture the effect of domestic investment on the growth of the economy for the period under review. Interest Rate and exchange rate were also added as control variables in the model. Granger causality test was also employed to determine the direction of causality between FDI and economic growth in Nigeria. The result of the OLS techniques indicates that FDI has a positive and insignificant impact on the growth of Nigerian economy for the period under study. GFCF which was used as a proxy for domestic investment has a positive and significant impact on economic growth. Interest rate was found to be positive and insignificant while exchange rate positively and significantly affects the growth of Nigeria economy. Therefore, government should provide an enabling environment that will encourage foreign investors to invest in Nigeria economy by addressing the security challenges in the country, providing investment friendly environment by improved regulatory framework as well as encourage domestic investment.
This study examined the relationship between forensic accounting and corporate governance. The su... more This study examined the relationship between forensic accounting and corporate governance. The survey design method was used for this study and primary source was used in generating data for this research. This study concentrated on fifteen (15) staff of First Bank PLC in head quarters Marina Lagos from the finance and control department of the bank. Result emanating from the finding of this study revealed that there is a significant positive relationship the application of forensic accounting and corporate governance measured by board performance. This implies that the application of forensic accounting has the potential of improving corporate governance through enhanced board performance of organizations. This study therefore concludes that forensic accounting is an essential ingredient at ensuring good corporate governance in banks. It is therefore; recommended that there should be proper separation of duties of board members. This will ensure that the boards are constituted properly thereby enhancing good corporate governance of Nigerian banks.
Adequate knowledge about the volatility, performance and efficiency of stock returns remains vita... more Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to instill in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from daily reports of the Nigerian Stock Exchange from 2 nd January, 2001 to 31 st December, 2015. The study used the ARCH/GARCH to test the hypothesis stated. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock market. This is because it was revealed that for stock returns, p-value was less 0.05 and equal to zero showing that the ARCH test statistics exceeds its critical value. Therefore, ARCH/GARCH test strongly rejects the null hypothesis that there is no significant ARCH/GARCH (volatility) effect in given return of all shares index. The study thus concludes that the stock returns contained correlation in its returns or squared returns, which meant that ARCH/GARCH process was found. After testing the dataset, the models were set up and run; the parameters were estimated for each of the model with their conditional volatility. As the conditional volatility is the main ingredient for forecasting volatility and its depended on conditional variance. Then, we check the quality of our estimated parameter and volatility. First test the innovations of each, that there are any kind of correlation is present or not. It was found that there is no significant correlation and ARCH/GARCH effect was present. Therefore, models for single index that are good fitted and better, explained the market variation and volatility observed in the Nigerian Stock Market. The recommendation is that Strategies need to be designed toward reaping abnormal returns by exploiting information and actions that enhance inefficiency in stock markets thus, firms and individuals should be encouraged to buy or sell securities outside their face values, as a means of encouraging business or economic activities in the economy.
This study looked at the contributions of oil export earnings and non oil export earnings indepen... more This study looked at the contributions of oil export earnings and non oil export earnings independently to the totality of exports for Nigeria from 2007 to 2016.Nigeria economy being mostly dependent on oil export earnings stand a great risk of being vulnerable to price shocks and foreign exchange volatility. To understand why the problem persists we set out to find out the direction and magnitude of dependence of the economy on earnings from petroleum products and non-petroleum products for Nigeria for the tem-year period. The review of past work in related area was looked at as well. The data collected was from OPEC statistical bulletin from 2007 to 2016. To test the hypotheses, we adopted the linear regression model in line with existing studies in this area of finance, for instance, the works of Arumugam (1997), Berument and Kiymaz (2001) and Rahman (2009), Guha Deb and Mukherjee (2008), regression is a statistical technique used in measuring the impact of one or more variables (otherwise known as independent variables or regressors) on another variable (the dependent variable or the regressand). To perfect robustness of the research methods the statistical package used employed is the SPSS (version 16.0). The data collected was secondary data consisting of the gross export earnings, oil export earnings and non-oil earnings. The R2 for the first hypothesis showed 93.5% of the variations in the total export can be explained by the changes in the oil export earnings unlike the R2 of the second hypothesis which could only be explained with 12.4%. The condition Index also indicates that the factor 2 has a higher value (6.063) than factor 1 (1.000) which indicates a near linear dependence of the gross exports on oil exports. The residual statistical distribution in table 4.7 reveals that there is no significant difference in value between the standard predicted value and the standard residuals this suggests that conditions for normality has been met since the residuals closely follow the conditions for a true normal distribution. The variance inflation factor and tolerance level for both hypothesis was 1 which means that that the incidence of collinearity or multicollinearity is very low, an indicator of the model's strength. So it is not significant enough to affect the reliability of the methodology in use and shouldn't invalidate the results obtained. Nigeria's economy depends mainly on oil revenue, the non-oil sectors have been left largely untapped. The petroleum refineries have been operating far below their previous capacity as Nigeria has been importing refined petroleum for many years now. This has exacerbated imbalances in the economy. The failure to diversify the economy is strongly evident in years of not investing oil revenues in multi-sector economic growth rather the funds have been used to lavish on unsustainable import reliance, poorly sustained policies and corruption. The banking and foreign exchange reserves to the capital market and the mortgage sector are very vulnerable the intrigues of oil price volatility in the Nigerian economy. The government should pay more attention to diversifying away from oil to other viable sectors including the agricultural sector. In addition to the potential food sufficiency this can lead to economic prosperity. Given the size of the agricultural value chains in production, inputs and mechanization, processing, marketing and finance, research and development. The jobs and wealth creation expected from this development would lead to sustainable economic growth. Macroeconomic stability and supportive regulatory and institutional frameworks are key prerequisites for economic diversification by insulating the economy from the impact of oil price volatility is necessary to lay a sound foundation for economic diversification. It requires sound fiscal policy and framework, effective liquidity management and prudent monetary policy, supportive financial sector policies and a fairly valued exchange rate.
It is well documented that expected stock returns vary with the day of the week in developed stoc... more It is well documented that expected stock returns vary with the day of the week in developed stock markets as well as in emerging stock markets. The evidence of this seasonal pattern has, however, been very scanty in the case of Nigeria. The research therefore investigates the presence of the day of the week in the Nigerian Stock Exchange. The Ordinary Least Square method was used to analyze the stock returns pattern for a period ranging from 2nd January 2009 to 31st December 2015. Results obtained from the study shows that Friday returns is significantly higher than returns of other days of the week. This finding confirms the existence of the day of the week effect in the NSE daily return.
The fundamental role of stock market is to provide adequate guarantee to share holders for the ex... more The fundamental role of stock market is to provide adequate guarantee to share holders for the existence of market for their second hand securities. Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to in still in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of liquidity and volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from monthly reports of the Nigerian Stock Exchange from January, 2009 to December, 2015. The study used the Ordinary least square and ARCH/GARCH to test the hypotheses stated. The result from the hypotheses tested revealed that stock market returns measured by all shares index was positively and significantly impacted by liquidity measured by market capitalization value ratio and turnover ratio of the Nigerian Stock Exchange but was negatively and significantly impacted by volume of transaction ratio. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock market. The study thus concludes that the Nigerian Stock Exchange should act to in still more confidence on investors. Thus, the study recommends amongst others that strategies need to be designed toward reaping abnormal returns by exploiting information and actions that enhance inefficiency in stock markets thus, firms and individuals should be encouraged to buy or sell securities outside their face values, as a means of encouraging business or economic activities in the economy.
Capital account liberalization is a parameter used in measuring the degree of openness of an econ... more Capital account liberalization is a parameter used in measuring the degree of openness of an economy, signaling the rate of inflow and outflow of capital from one economy to another without undermining its territorial integrity and independence. The greatest challenge facing the country today is how to grow the economy and reduce poverty. Meeting this challenge is particularly difficult, if Nigeria should rely solely on domestic resources, given the low rate of savings and the attendant savings-investment gap. Against this background, it becomes crucial to try and attract foreign resources into the economy. This study examines the impact of capital account liberalization on economic growth in Nigeria. The period of study covers between 1971 and 2011. This period was divided into Pre-Liberalization and Post-Liberalization eras. The technique of analysis is the Ordinary Least Square Method using the E-view statistical software. The study reveals that capital account liberalization had positive and significant impact on economic growth in Nigeria, therefore, the removal of restrictions from international transactions related to the movement of capital leads to an increase in economic growth.
This paper investigates the existence of stock returns seasonality on the Nigerian Stock Exchange... more This paper investigates the existence of stock returns seasonality on the Nigerian Stock Exchange (NSE). Regression-based approach was used to analyse the monthly stock return data for seasonal pattern from January 1985 to March 2011. The full sample was divided into three sub-sample periods which covers stock market events in Nigeria. Results obtained from the study indicate that the highest return occurs in the month of May. The sub-sample III results support the month of May highest return. Results from sub-sample I and II periods however show that the highest return occur in June. Further analysis reveals that the coefficients of the twelve months of the year are jointly statistically equal to zero, indicating evidence against January effects or any monthly pattern in the NSE returns.
Given the need for foreign investment, the level of technology, deepening of financial markets, g... more Given the need for foreign investment, the level of technology, deepening of financial markets, globalization and the implications of a financial crisis at the global stage there is need for expanding the frontiers in the current knowledge and seeking a better and more enduring understanding of market failures, risk and return. Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. This book will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence like many emerging markets is vital to investors. It was against the forgoing that this study examined the impact on stock market returns of liquidity and volatility in the Nigerian Stock market.
This study investigates the role of institutional structure on asymmetries dynamic impact of fina... more This study investigates the role of institutional structure on asymmetries dynamic impact of financial integration, capital market development on economic performance in Sub-Saharan Africa (SSA). The study classified economic performance into RGDPC, nominal gdp and human capital development, and employed (PNARDL) modeling framework, and a panel of 16 nations of SSA over the period 1996-2019. The finding of this research output can be summarize as thus: i.) In the long run, a rise in positive shock to the financial integration index leads to a rise in RGDPC, while a negative shock to FI leads to a fall in RGDPC. ii.) Both shocks (positive and negative) to MCAP reduce RGDPC. Institutional quality index (INSQI) is revealed to have a positive and significant impact on RGDPC in the long run and indeed intensify their asymmetries. iii.) Both shocks to FI exert inverse influence on nominal GDPC, while positive and negative shocks to MCAP exert a positive and negative influence on GDPC, respectively. INSQI also affects GDPC negatively and significantly and indeed reduces their asymmetries. iv.) Positive and negative shocks to FI reduce HCD as well as shocks to MCAP. INSQI, on the other hand, adds to HCD and intensifies their asymmetries. However, the lack of consistency in the results across the models suggest that the interplay between these variables are still undeveloped relative to other continents of the world, and the benefits are yet to be adequately harnessed.
This study looked at the contributions of oil export earnings and non oil export earnings indepen... more This study looked at the contributions of oil export earnings and non oil export earnings independently to the totality of exports for Nigeria from 2007 to 2016.Nigeria economy being mostly dependent on oil export earnings stand a great risk of being vulnerable to price shocks and foreign exchange volatility. To understand why the problem persists we set out to find out the direction and magnitude of dependence of the economy on earnings from petroleum products and non-petroleum products for Nigeria for the tem –year period. The review of past work in related area was looked at as well. The data collected was from OPEC statistical bulletin from 2007 to 2016. To test the hypotheses, we adopted the linear regression model in line with existing studies in this area of finance, for instance, the works of Arumugam (1997), Berument and Kiymaz (2001) and Rahman (2009), Guha Deb and Mukherjee (2008), regression is a statistical technique used in measuring the impact of one or more variables...
The study was on stock market performance of quoted oil firms in the Nigeria using the ARIMA mode... more The study was on stock market performance of quoted oil firms in the Nigeria using the ARIMA model approach. The problem of study is that that previous studies have questionable methodologies when measuring the impact of certain factors on stock market returns. Again, the existence of multiple competing models immediately calls into question the robustness of previous findings, the squared returns of some of the models also obscured by very noisy volatility indicators. The objective of study is to examine the impact of liquidity measured by turnover ratio on stock market returns of petroleum firms in the Nigerian Stock Market. In the methodology used was the ARIMA model, findings indicate evidence that AR is stationary and MA is invertible. For the three oil firms under study it was evident that there were significant relationship between their liquidity measured by market capitalization ratio and their respective stock market returns. Amongst the three quoted oil firms, Mobil Plc a...
Adequate knowledge about the volatility, performance and efficiency of stock returns remains vita... more Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to instill in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from daily reports of the Nigerian Stock Exchange from 2 nd January, 2001 to 31 st December, 2015. The study used the ARCH/GARCH to test the hypothesis stated. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock mar...
The study looked at the economic growth measured by the Gross Domestic Product in current market ... more The study looked at the economic growth measured by the Gross Domestic Product in current market prices of OPEC member states and the attendant contributions of oil export earnings and non-oil export earnings. The statement of research problem was the difficult of coping with oil price volatility among OPEC member nations especially in the light of challenging realities in growing research into alternative energy options, policy disagreements among OPEC states, and over dependence on oil by these OPEC members. The literature reviewed contained the conceptual framework, theoretical framework and empirical framework. The methodology of study adopted regression approach using E-views. Stata statistical program was utilized in the summary of statistics on tables 1 to 13. The Least Squares Dummy Variable Corrected (LSDVC) model was a useful model applied in this research to correct bias having heterogeneity among subjects which allowed each entity to have its own intercept value. Graphic...
This research study was conducted on banking sector reforms, its opportunities and challenges for... more This research study was conducted on banking sector reforms, its opportunities and challenges for Nigeria Economic Development. The study examined how the banking sector performed a decade after the 2005 banking recapitalization, the problems associated with the profitability and efficiency of banks. The study utilized multiple regression using SPSS, The correlation coefficient R2 for each of the banks studied indicated that most of the variations in the dependent variables were explained in the independent variables. The Variance Impact Factor (VIF) and F-tests showed that model was not plagued by multicollinearity and the model’s goodness of fit adjudged reliable. It became apparent from the findings that the banking sector reforms in 2005 significantly impacted on the lending rates, deposits and profitability. The study recommends that various macroeconomic and institutional problems facing the Nigerian economy, which include inappropriate macroeconomic policies, inadequate polic...
The fundamental role of stock market is to provide adequate guarantee to share holders for the ex... more The fundamental role of stock market is to provide adequate guarantee to share holders for the existence of market for their second hand securities. Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to in still in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of liquidity and volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from monthly reports of the Nigerian Stock Exchange from January, 2009 to December, 2015. The study used the Ordinary least square ...
The Nigerian banking sector before and after the reforms and the credit creation of banks was the... more The Nigerian banking sector before and after the reforms and the credit creation of banks was the central focus of this study. The implications of economic reforms on the economic development of Nigeria motivated this investigation. The study examined how the banking sector performed during and after the reforms, the problems associated with the reforms and its related advantages. The study utilized regression method by using E-views statistical package. The correlation coefficient R2 for each of the periods under consideration showed that most of the variations in the dependent variables were explained in the independent variables after the reforms than before the reforms. The study found out that the 2005 reforms increased credit creation capacity for the banks beyond the years prior to the reforms. Consequent to this the decision was to accept the alternate hypothesis which stated that banks credit creation ability before the 2005 banking reforms was not significantly greater tha...
The study applies simple regression model to know the impact of dividend on share prices using so... more The study applies simple regression model to know the impact of dividend on share prices using software packages such as E-views and MS-Excel 2007 model in investigating to find out if the Nigerian stock market reacts efficiently to dividend announcements in terms of price adjustments. In capturing reactions around the 3-day, 21-day and 61-day windows before and after the announcements, the study considered the level of the speed of adjustment of share prices to the announcement of dividend payments. In so doing earnings and dividend announcements are found to concurrently announced unlike in developed capital markets. Since the studies indicate a drift in share prices 30 days after announcements The CERs for the 3-day, 21-day and 60-day event windows are positive and statistically significant for dividend announcements. This shows that the Nigerian Stock Market does not react efficiently to dividend announcements in terms of prices adjustments and also does not adjust to announced ...
ERN: Other Microeconomics: General Equilibrium & Disequilibrium Models of Financial Markets (Topic), 2016
Adequate knowledge about the volatility, performance and efficiency of stock returns remains vita... more Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to instill in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from daily reports of the Nigerian Stock Exchange from 2nd January, 2001 to 31st December, 2015. The study used the ARCH/GARCH to test the hypothesis stated. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock marke...
This study investigates the empirical relationship between Foreign Direct Investment and economic... more This study investigates the empirical relationship between Foreign Direct Investment and economic growth in Nigeria. The work covered a period of 1981-2009 using an annual data from Central Bank of Nigeria statistical bulletin. A growth model via the Ordinary Least Square method was used to ascertain the relationship between FDI and economic growth in Nigeria. The study also added Gross Fixed Capital Formation with a view to capture the effect of domestic investment on the growth of the economy for the period under review. Interest Rate and exchange rate were also added as control variables in the model. Granger causality test was also employed to determine the direction of causality between FDI and economic growth in Nigeria. The result of the OLS techniques indicates that FDI has a positive and insignificant impact on the growth of Nigerian economy for the period under study. GFCF which was used as a proxy for domestic investment has a positive and significant impact on economic growth. Interest rate was found to be positive and insignificant while exchange rate positively and significantly affects the growth of Nigeria economy. Therefore, government should provide an enabling environment that will encourage foreign investors to invest in Nigeria economy by addressing the security challenges in the country, providing investment friendly environment by improved regulatory framework as well as encourage domestic investment.
This study examined the relationship between forensic accounting and corporate governance. The su... more This study examined the relationship between forensic accounting and corporate governance. The survey design method was used for this study and primary source was used in generating data for this research. This study concentrated on fifteen (15) staff of First Bank PLC in head quarters Marina Lagos from the finance and control department of the bank. Result emanating from the finding of this study revealed that there is a significant positive relationship the application of forensic accounting and corporate governance measured by board performance. This implies that the application of forensic accounting has the potential of improving corporate governance through enhanced board performance of organizations. This study therefore concludes that forensic accounting is an essential ingredient at ensuring good corporate governance in banks. It is therefore; recommended that there should be proper separation of duties of board members. This will ensure that the boards are constituted properly thereby enhancing good corporate governance of Nigerian banks.
Adequate knowledge about the volatility, performance and efficiency of stock returns remains vita... more Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to instill in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from daily reports of the Nigerian Stock Exchange from 2 nd January, 2001 to 31 st December, 2015. The study used the ARCH/GARCH to test the hypothesis stated. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock market. This is because it was revealed that for stock returns, p-value was less 0.05 and equal to zero showing that the ARCH test statistics exceeds its critical value. Therefore, ARCH/GARCH test strongly rejects the null hypothesis that there is no significant ARCH/GARCH (volatility) effect in given return of all shares index. The study thus concludes that the stock returns contained correlation in its returns or squared returns, which meant that ARCH/GARCH process was found. After testing the dataset, the models were set up and run; the parameters were estimated for each of the model with their conditional volatility. As the conditional volatility is the main ingredient for forecasting volatility and its depended on conditional variance. Then, we check the quality of our estimated parameter and volatility. First test the innovations of each, that there are any kind of correlation is present or not. It was found that there is no significant correlation and ARCH/GARCH effect was present. Therefore, models for single index that are good fitted and better, explained the market variation and volatility observed in the Nigerian Stock Market. The recommendation is that Strategies need to be designed toward reaping abnormal returns by exploiting information and actions that enhance inefficiency in stock markets thus, firms and individuals should be encouraged to buy or sell securities outside their face values, as a means of encouraging business or economic activities in the economy.
This study looked at the contributions of oil export earnings and non oil export earnings indepen... more This study looked at the contributions of oil export earnings and non oil export earnings independently to the totality of exports for Nigeria from 2007 to 2016.Nigeria economy being mostly dependent on oil export earnings stand a great risk of being vulnerable to price shocks and foreign exchange volatility. To understand why the problem persists we set out to find out the direction and magnitude of dependence of the economy on earnings from petroleum products and non-petroleum products for Nigeria for the tem-year period. The review of past work in related area was looked at as well. The data collected was from OPEC statistical bulletin from 2007 to 2016. To test the hypotheses, we adopted the linear regression model in line with existing studies in this area of finance, for instance, the works of Arumugam (1997), Berument and Kiymaz (2001) and Rahman (2009), Guha Deb and Mukherjee (2008), regression is a statistical technique used in measuring the impact of one or more variables (otherwise known as independent variables or regressors) on another variable (the dependent variable or the regressand). To perfect robustness of the research methods the statistical package used employed is the SPSS (version 16.0). The data collected was secondary data consisting of the gross export earnings, oil export earnings and non-oil earnings. The R2 for the first hypothesis showed 93.5% of the variations in the total export can be explained by the changes in the oil export earnings unlike the R2 of the second hypothesis which could only be explained with 12.4%. The condition Index also indicates that the factor 2 has a higher value (6.063) than factor 1 (1.000) which indicates a near linear dependence of the gross exports on oil exports. The residual statistical distribution in table 4.7 reveals that there is no significant difference in value between the standard predicted value and the standard residuals this suggests that conditions for normality has been met since the residuals closely follow the conditions for a true normal distribution. The variance inflation factor and tolerance level for both hypothesis was 1 which means that that the incidence of collinearity or multicollinearity is very low, an indicator of the model's strength. So it is not significant enough to affect the reliability of the methodology in use and shouldn't invalidate the results obtained. Nigeria's economy depends mainly on oil revenue, the non-oil sectors have been left largely untapped. The petroleum refineries have been operating far below their previous capacity as Nigeria has been importing refined petroleum for many years now. This has exacerbated imbalances in the economy. The failure to diversify the economy is strongly evident in years of not investing oil revenues in multi-sector economic growth rather the funds have been used to lavish on unsustainable import reliance, poorly sustained policies and corruption. The banking and foreign exchange reserves to the capital market and the mortgage sector are very vulnerable the intrigues of oil price volatility in the Nigerian economy. The government should pay more attention to diversifying away from oil to other viable sectors including the agricultural sector. In addition to the potential food sufficiency this can lead to economic prosperity. Given the size of the agricultural value chains in production, inputs and mechanization, processing, marketing and finance, research and development. The jobs and wealth creation expected from this development would lead to sustainable economic growth. Macroeconomic stability and supportive regulatory and institutional frameworks are key prerequisites for economic diversification by insulating the economy from the impact of oil price volatility is necessary to lay a sound foundation for economic diversification. It requires sound fiscal policy and framework, effective liquidity management and prudent monetary policy, supportive financial sector policies and a fairly valued exchange rate.
It is well documented that expected stock returns vary with the day of the week in developed stoc... more It is well documented that expected stock returns vary with the day of the week in developed stock markets as well as in emerging stock markets. The evidence of this seasonal pattern has, however, been very scanty in the case of Nigeria. The research therefore investigates the presence of the day of the week in the Nigerian Stock Exchange. The Ordinary Least Square method was used to analyze the stock returns pattern for a period ranging from 2nd January 2009 to 31st December 2015. Results obtained from the study shows that Friday returns is significantly higher than returns of other days of the week. This finding confirms the existence of the day of the week effect in the NSE daily return.
The fundamental role of stock market is to provide adequate guarantee to share holders for the ex... more The fundamental role of stock market is to provide adequate guarantee to share holders for the existence of market for their second hand securities. Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to in still in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of liquidity and volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from monthly reports of the Nigerian Stock Exchange from January, 2009 to December, 2015. The study used the Ordinary least square and ARCH/GARCH to test the hypotheses stated. The result from the hypotheses tested revealed that stock market returns measured by all shares index was positively and significantly impacted by liquidity measured by market capitalization value ratio and turnover ratio of the Nigerian Stock Exchange but was negatively and significantly impacted by volume of transaction ratio. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock market. The study thus concludes that the Nigerian Stock Exchange should act to in still more confidence on investors. Thus, the study recommends amongst others that strategies need to be designed toward reaping abnormal returns by exploiting information and actions that enhance inefficiency in stock markets thus, firms and individuals should be encouraged to buy or sell securities outside their face values, as a means of encouraging business or economic activities in the economy.
Capital account liberalization is a parameter used in measuring the degree of openness of an econ... more Capital account liberalization is a parameter used in measuring the degree of openness of an economy, signaling the rate of inflow and outflow of capital from one economy to another without undermining its territorial integrity and independence. The greatest challenge facing the country today is how to grow the economy and reduce poverty. Meeting this challenge is particularly difficult, if Nigeria should rely solely on domestic resources, given the low rate of savings and the attendant savings-investment gap. Against this background, it becomes crucial to try and attract foreign resources into the economy. This study examines the impact of capital account liberalization on economic growth in Nigeria. The period of study covers between 1971 and 2011. This period was divided into Pre-Liberalization and Post-Liberalization eras. The technique of analysis is the Ordinary Least Square Method using the E-view statistical software. The study reveals that capital account liberalization had positive and significant impact on economic growth in Nigeria, therefore, the removal of restrictions from international transactions related to the movement of capital leads to an increase in economic growth.
This paper investigates the existence of stock returns seasonality on the Nigerian Stock Exchange... more This paper investigates the existence of stock returns seasonality on the Nigerian Stock Exchange (NSE). Regression-based approach was used to analyse the monthly stock return data for seasonal pattern from January 1985 to March 2011. The full sample was divided into three sub-sample periods which covers stock market events in Nigeria. Results obtained from the study indicate that the highest return occurs in the month of May. The sub-sample III results support the month of May highest return. Results from sub-sample I and II periods however show that the highest return occur in June. Further analysis reveals that the coefficients of the twelve months of the year are jointly statistically equal to zero, indicating evidence against January effects or any monthly pattern in the NSE returns.
Given the need for foreign investment, the level of technology, deepening of financial markets, g... more Given the need for foreign investment, the level of technology, deepening of financial markets, globalization and the implications of a financial crisis at the global stage there is need for expanding the frontiers in the current knowledge and seeking a better and more enduring understanding of market failures, risk and return. Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. This book will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence like many emerging markets is vital to investors. It was against the forgoing that this study examined the impact on stock market returns of liquidity and volatility in the Nigerian Stock market.
This study investigates the role of institutional structure on asymmetries dynamic impact of fina... more This study investigates the role of institutional structure on asymmetries dynamic impact of financial integration, capital market development on economic performance in Sub-Saharan Africa (SSA). The study classified economic performance into RGDPC, nominal gdp and human capital development, and employed (PNARDL) modeling framework, and a panel of 16 nations of SSA over the period 1996-2019. The finding of this research output can be summarize as thus: i.) In the long run, a rise in positive shock to the financial integration index leads to a rise in RGDPC, while a negative shock to FI leads to a fall in RGDPC. ii.) Both shocks (positive and negative) to MCAP reduce RGDPC. Institutional quality index (INSQI) is revealed to have a positive and significant impact on RGDPC in the long run and indeed intensify their asymmetries. iii.) Both shocks to FI exert inverse influence on nominal GDPC, while positive and negative shocks to MCAP exert a positive and negative influence on GDPC, respectively. INSQI also affects GDPC negatively and significantly and indeed reduces their asymmetries. iv.) Positive and negative shocks to FI reduce HCD as well as shocks to MCAP. INSQI, on the other hand, adds to HCD and intensifies their asymmetries. However, the lack of consistency in the results across the models suggest that the interplay between these variables are still undeveloped relative to other continents of the world, and the benefits are yet to be adequately harnessed.
This study looked at the contributions of oil export earnings and non oil export earnings indepen... more This study looked at the contributions of oil export earnings and non oil export earnings independently to the totality of exports for Nigeria from 2007 to 2016.Nigeria economy being mostly dependent on oil export earnings stand a great risk of being vulnerable to price shocks and foreign exchange volatility. To understand why the problem persists we set out to find out the direction and magnitude of dependence of the economy on earnings from petroleum products and non-petroleum products for Nigeria for the tem –year period. The review of past work in related area was looked at as well. The data collected was from OPEC statistical bulletin from 2007 to 2016. To test the hypotheses, we adopted the linear regression model in line with existing studies in this area of finance, for instance, the works of Arumugam (1997), Berument and Kiymaz (2001) and Rahman (2009), Guha Deb and Mukherjee (2008), regression is a statistical technique used in measuring the impact of one or more variables...
The study was on stock market performance of quoted oil firms in the Nigeria using the ARIMA mode... more The study was on stock market performance of quoted oil firms in the Nigeria using the ARIMA model approach. The problem of study is that that previous studies have questionable methodologies when measuring the impact of certain factors on stock market returns. Again, the existence of multiple competing models immediately calls into question the robustness of previous findings, the squared returns of some of the models also obscured by very noisy volatility indicators. The objective of study is to examine the impact of liquidity measured by turnover ratio on stock market returns of petroleum firms in the Nigerian Stock Market. In the methodology used was the ARIMA model, findings indicate evidence that AR is stationary and MA is invertible. For the three oil firms under study it was evident that there were significant relationship between their liquidity measured by market capitalization ratio and their respective stock market returns. Amongst the three quoted oil firms, Mobil Plc a...
Adequate knowledge about the volatility, performance and efficiency of stock returns remains vita... more Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to instill in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from daily reports of the Nigerian Stock Exchange from 2 nd January, 2001 to 31 st December, 2015. The study used the ARCH/GARCH to test the hypothesis stated. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock mar...
The study looked at the economic growth measured by the Gross Domestic Product in current market ... more The study looked at the economic growth measured by the Gross Domestic Product in current market prices of OPEC member states and the attendant contributions of oil export earnings and non-oil export earnings. The statement of research problem was the difficult of coping with oil price volatility among OPEC member nations especially in the light of challenging realities in growing research into alternative energy options, policy disagreements among OPEC states, and over dependence on oil by these OPEC members. The literature reviewed contained the conceptual framework, theoretical framework and empirical framework. The methodology of study adopted regression approach using E-views. Stata statistical program was utilized in the summary of statistics on tables 1 to 13. The Least Squares Dummy Variable Corrected (LSDVC) model was a useful model applied in this research to correct bias having heterogeneity among subjects which allowed each entity to have its own intercept value. Graphic...
This research study was conducted on banking sector reforms, its opportunities and challenges for... more This research study was conducted on banking sector reforms, its opportunities and challenges for Nigeria Economic Development. The study examined how the banking sector performed a decade after the 2005 banking recapitalization, the problems associated with the profitability and efficiency of banks. The study utilized multiple regression using SPSS, The correlation coefficient R2 for each of the banks studied indicated that most of the variations in the dependent variables were explained in the independent variables. The Variance Impact Factor (VIF) and F-tests showed that model was not plagued by multicollinearity and the model’s goodness of fit adjudged reliable. It became apparent from the findings that the banking sector reforms in 2005 significantly impacted on the lending rates, deposits and profitability. The study recommends that various macroeconomic and institutional problems facing the Nigerian economy, which include inappropriate macroeconomic policies, inadequate polic...
The fundamental role of stock market is to provide adequate guarantee to share holders for the ex... more The fundamental role of stock market is to provide adequate guarantee to share holders for the existence of market for their second hand securities. Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to in still in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of liquidity and volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from monthly reports of the Nigerian Stock Exchange from January, 2009 to December, 2015. The study used the Ordinary least square ...
The Nigerian banking sector before and after the reforms and the credit creation of banks was the... more The Nigerian banking sector before and after the reforms and the credit creation of banks was the central focus of this study. The implications of economic reforms on the economic development of Nigeria motivated this investigation. The study examined how the banking sector performed during and after the reforms, the problems associated with the reforms and its related advantages. The study utilized regression method by using E-views statistical package. The correlation coefficient R2 for each of the periods under consideration showed that most of the variations in the dependent variables were explained in the independent variables after the reforms than before the reforms. The study found out that the 2005 reforms increased credit creation capacity for the banks beyond the years prior to the reforms. Consequent to this the decision was to accept the alternate hypothesis which stated that banks credit creation ability before the 2005 banking reforms was not significantly greater tha...
The study applies simple regression model to know the impact of dividend on share prices using so... more The study applies simple regression model to know the impact of dividend on share prices using software packages such as E-views and MS-Excel 2007 model in investigating to find out if the Nigerian stock market reacts efficiently to dividend announcements in terms of price adjustments. In capturing reactions around the 3-day, 21-day and 61-day windows before and after the announcements, the study considered the level of the speed of adjustment of share prices to the announcement of dividend payments. In so doing earnings and dividend announcements are found to concurrently announced unlike in developed capital markets. Since the studies indicate a drift in share prices 30 days after announcements The CERs for the 3-day, 21-day and 60-day event windows are positive and statistically significant for dividend announcements. This shows that the Nigerian Stock Market does not react efficiently to dividend announcements in terms of prices adjustments and also does not adjust to announced ...
ERN: Other Microeconomics: General Equilibrium & Disequilibrium Models of Financial Markets (Topic), 2016
Adequate knowledge about the volatility, performance and efficiency of stock returns remains vita... more Adequate knowledge about the volatility, performance and efficiency of stock returns remains vital and essential information to investors. These will guide not only investment decisions but also planning for economic growth and development. Given that the Nigerian Stock Exchange has existed, its ability to generate confidence is still in doubt given the recent crash witnessed in the market. It means the confidence the exchange is expected to instill in investors is still not commensurable. It was against the forgoing that this study examined the impact on stock market returns of volatility in the Nigerian Stock market. The study adopted the ex-post facto research design and data were obtained from daily reports of the Nigerian Stock Exchange from 2nd January, 2001 to 31st December, 2015. The study used the ARCH/GARCH to test the hypothesis stated. The results also revealed that, there is a significant ARCH/GARCH (volatility) effect on stock market returns of the Nigerian Stock marke...
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