Ownership Structure and The Performance of Quoted Companies in Nigeria

Following the Berle-Means thesis ( 1932) which implies that diffuse ownership adversely affects finn pe1jonnance, diverse researches have been carried out to obtain an empirical evidence to support or nullify their position. This work, seeks to find out whether the ownership structure of Nigerian finns results in systematic variations in their pe1jormance. For the purpose of this study, ownership structure was classified as inside or managerial ownership and outside ownership (those who are not directly involved in management). The objective of the study is to ascertain the influence of each of the classification onfirm 's pe1jonnance. The hypotheses were tested using datafor 20 Nigerian firms listed on the NSE. Empirical findings suggest that whereas a high level of inside ownership negatively but significantly relates to higher firms' performance, outside ownership was found to be positively and significantly related to firm performanc

Money Supply and Asset Prices in Nigeria (2008-2013): An Empirical Review

This paper examined the impact of Broad Money supply (M2) on Asset prices in Nigeria. Monthly data, in logarithmic form, was used for the period 2008M1-2013M12. The Eview7 Statistical Software was employed to conduct more robust tests in order to empirically analyze the data. The Unit root test show that the variables were stationary after being first differenced; at the 5% significance level. The Johansen Cointegration test gave evidence of one cointegrating equation which explains that a long-run equilibrium relationship exist between LogSMC and LogBMS. The Vector Error Correction Model was used to analyze short-run adjustment dynamics and showed -0.08% speed of adjustment of prior deviations from equilibrium. Thus, about 8% of disequilibrium is corrected monthly. The Granger Causality test demonstrate a Uni-directional causality from LogBMS→LogSMC supporting the views of Flannery and Protopapadakis (2002), Raymond (2009), Maku and Atanda (2010), Kohout (2010), Veselá (2010), Eze (2011), Ahmed and Suliman (2011), Ossisanwo and Atanda (2012), Chude and Chude (2013), Mirza and Hashem (2013), and Haruna et al (2013); that the supply of money has a significant impact on Asset prices. Furthermore, the Impulse Response and Variance Decomposition test indicate both positive and negative shocks which are in consistent with our findings from the VECM and Granger causality analysis. Overall, all the results obtained are in line with apriori expectation. A policy direction is that the CBN can use Money supply as a monetary policy tool to effect changes in growth levels in the stock markets in Nigeria. Keywords: Broad Money Supply, Asset Prices, Unit Root Test, Vector Error Correction Model, Granger Causality Test, Impulse Response and Variance Decomposition Tes

Credit Risk Management and the Performance of Deposit Money Banks in Nigeria: An Error Correction Analysis

This paper set out to investigate the impact of credit risk management on the performance of deposit money banks in Nigeria using the ECM and Granger causality techniques in addition to the IRF and VDC methodology. Data for the study were sourced from the CBN Statistical Bulletin and the Annual Reports and Accounts of the NDIC for the period 1989 to 2013. Our findings demonstrate succinctly that the selected credit risk management indicators under study significantly impact on the performance of deposit money banks measured as return on equity, return on total assets, and return on shareholders’ fund respectively. However, the findings report no evidence of significant granger causality relationship between the various credit risk management indicators and the various measures of performance except for a uni-directional granger causality relationship from ROE to RNPD and from ROTA to RNPS respectively. Based on the foregoing, it is recommended that given the observed significant relation between credit risk management and performance, deposit money banks in Nigeria should always pay particular attention to their credit risk management policies in order to significantly improve on the performance of these banks

Dynamic Interactions of Nigerian Stock Market and Macroeconomic Variables

This study investigated the Dynamic Interactions of Nigerian Stock Market and Macroeconomic Variables with annual data collected from the Central Bank of Nigeria, Nigerian Stock Exchange Fact Books and National Bureau of Statistics from 1985 to 2018. It was found that economic growth proxied by Growth Domestic product and Interest rate have positive and significant relationship with all share index within the period of study, while inflation exerts negative influence on All Share Index. It was also found that exchange rate has insignificant impact on All Share Index within the scope of the study. Consequently, the researchers are of the opinion among others that government and her regulatory bodies devise adequate measure to curtail inflation in Nigeria. Keywords: Nigeria Stock Market, All Share Index, Macroeconomic Variables, ARDL. DOI: 10.7176/RJFA/11-8-04 Publication date: April 30th 202

Variance, Estimation Intervals and Foreign Exchange Market: COVID-19 Induced Evidence from Nigeria

The position of Nigeria in the comity of Nations, mostly as an oil exporting nation, makes it imperative to ascertain exchange rate risk amidst economic vagaries such as the COVID-19 pandemic ravaging the country and the world at large. For that, this study is conceived to examine the relationship between Conditional Variance and Exchange rate Market amidst COVID-19 pandemic ravaging the entire globe with emphasis in Nigeria using different estimation intervals (daily, weekly, and monthly) of exchange rate price computed from the exchange rate between the United State of America Dollars and the Nigeria Naira sourced from the Central Bank of Nigeria Statistical bulletin. ARCH, GARCH and EGARCH were employed for the analysis of secondary data collected from the Central Bank of Nigeria Statistical bulletin. For strong inferences, adequate comparison and concrete policy recommendations that will guide investors and other economic agents, the scope of this study is dissected into two periods; period preceding the outbreak of COVID-19 pandemic (pre-COVID-19 period) in Nigeria (February 26, 2018, to February 26, 2020) and two years into the pandemic (COVID-19 period) (February 27, 2020, to February 27, 2022) inclusive. In the pre-COVID-19 period, it was discovered that high volatility heralded the exchange rate market. The asymmetry parameter was found to be positive and significant level for both daily and weekly exchange rates, suggesting presence of leverage effects in the foreign exchange market in Nigeria within the scope of the study. It was also found that the conditional volatility (capturing the exchange rate-volatility relationship) for the daily exchange rate was negative and significant, while insignificant on a weekly basis. This shows that investors or speculators in the foreign exchange market are not adequately rewarded for taking additional risks in the pre-COVID-19 period. The persistent parameter was found to be significant for all the intervals, suggesting volatility in exchange rate price between Naira and US Dollar is persistent in the pre- COVID-19 period in Nigeria. It was also found that in the COVID-9 period there is a significant relationship between the price series and their lagged values, indicating that historical exchange rate prices on daily interval could be used to predict current and future prices in the foreign exchange market. It is suggested that the Central Bank of Nigeria initiates measures to forestall the persistent rise in the price of exchange rate experienced in COVID-19 period which has made the exchange movement become volatile and predictable. If such measures are taken, it will restore the evaporated trust and confidence in the foreign exchange market. This study has theoretical and practical implications for exchange rate management in Nigeria. Keywords: Exchange rate price, COVID-19 pandemic, Volatility Modelling, Purchasing Power Parity, ARCH family, Nigeria. DOI: 10.7176/RJFA/14-16-09 Publication date:August 31st 202