3 research outputs found

    STOCK MARKET PERFORMANCE AND MACROECONOMIC FUNDAMENTALS IN NIGERIA

    Get PDF
    Motivated by the need to examine the relationship between stock market performance and macroeconomic fundamentals in Nigeria, the study employed the ex post facto research design and deployed secondary data sourced from the Central Bank of Nigeria statistical bulletin over the period of 1981 to 2018. Crude oil price (COP), Consumer Price Index (CPI). Gross Domestic Product (GDP) and Money Supply (MS) were the research’s independent variables while the Annual Market Capitalization (AMC) of the Nigerian Stock Exchange was used as a proxy for stock market performance. Analytical techniques employed for this study included the Unit Root test, Johansen’s Cointegration, Error Correction Model, and Granger causality test. The study found a significant positive relationship between COP, MS, and AMC, a significant negative relationship between CPI and AMC, and a significant relationship observed between GDP and AMC. It revealed further the presence of a long-run relationship between the dependent and independent variables and that disequilibrium in the stock market is offset by changes in macroeconomic fundamentals studied in the long run. It also revealed a unidirectional relationship between AMC and MS, a bidirectional relationship between GDP and AMC, and no causality between COP, CPI, and AMC. The study recommends the need for increased output since it is what constitutes a country’s GDP which is a vital factor investors look at before investing in a stock market, on the other hand, the stock market should improve on its information dissemination function to enlighten corporate organizations about their core function which if properly utilized, will give corporate organizations access to long-term funds that will enable them to increase stock market performance

    FINANCIAL DEEPENING AND COMMERCIAL BANKS PERFORMNCE: EVIDENCE FROM NIGERIA

    Get PDF
    The work was aimed at determining the financial deepening impact on commercial bank performance in Nigeria. Financial deepening was decomposed into credit allocation to private sector as a ratio of GDP, money supply as a ratio of gross domestic product and total loan to deposit ratio while net interest margin was used as proxy for commercial bank performance. Data was sourced from the CBN statistical bulletin and the world bank data base from 2000 to 2022. The Augmented Dickey Fuller unit root test was used in determining stationarity of the data which were not stationary after first differencing hence giving room for the application of the ARDL bond test to determine the short and long run relationship between the implicated variables while the Granger causality test was used to determine the causality between financial deepening and commercial bank performance. The results revealed nonexistence of short run relation but existence of long run relationship was observed while a unidirectional relation between credit allocated to private sector ratio to GDP and net interest margin why no causality was recorded between other variables studied. The work recommends need for commercial banks to improve on their financial deepening activities so as to broaden their financial services operations and more so, policy makers should step in and ensure commercial banking broaden their financial deepening to accommodate individuals and the business world entirely

    FINANCIAL DEEPENING AND COMMERCIAL BANKS PERFORMNCE: EVIDENCE FROM NIGERIA

    No full text
    The work was aimed at determining the financial deepening impact on commercial bank performance in Nigeria. Financial deepening was decomposed into credit allocation to private sector as a ratio of GDP, money supply as a ratio of gross domestic product and total loan to deposit ratio while net interest margin was used as proxy for commercial bank performance. Data was sourced from the CBN statistical bulletin and the world bank data base from 2000 to 2022. The Augmented Dickey Fuller unit root test was used in determining stationarity of the data which were not stationary after first differencing hence giving room for the application of the ARDL bond test to determine the short and long run relationship between the implicated variables while the Granger causality test was used to determine the causality between financial deepening and commercial bank performance. The results revealed nonexistence of short run relation but existence of long run relationship was observed while a unidirectional relation between credit allocated to private sector ratio to GDP and net interest margin why no causality was recorded between other variables studied. The work recommends need for commercial banks to improve on their financial deepening activities so as to broaden their financial services operations and more so, policy makers should step in and ensure commercial banking broaden their financial deepening to accommodate individuals and the business world entirely
    corecore