Browsing by Author "John, Dollay Adigizey"

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    INFLATION RATE AND MARKET CAPITALIZATION: A CRITICAL ANALYSIS OF PERFORMANCE IN THE NIGERIAN STOCK MARKET
    (Department of Accounting Nasarawa State University Keffi., 2018-06-20) John, Dollay Adigizey; John, Toro Gimba; Veronica, Wamu Adigizey
    The contribution of the capital market to the socio-economic growth of Nigeria is invariably threatened by the level of inflation that impounds on capitalization. This study thus set to evaluate the effect of inflation rate on market capitalization in the Nigerian stock market. In line with the objective of this study, secondary data were obtained from the CBN Statistical Bulletin and Security exchange commission (SEC) and then Nigeria covering the period of1999 to 2017. Market Capitalization is used as the dependent variable while inflation rate is as the independent proxy with interest rate as the control variable. The study adopts ordinary least square (OLS) method of analysis using Eviews statistical package. It is found that inflation rate has positive and significant relationship with market capitalization. The work concludes with fisher's hypothesis that equity stock could be used as hedging against inflation. The study recommends that the Central Bank of Nigeria (CBN) should formulate and use policy instruments that will maintain inflation at a reasonably level so that it will not erode the real value of stock gains, and hence performance in the long run