Browsing by Author "Mungadi, Dauda Danladi"

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    EFFECT OF SELECTED MACROECONOMIC VARIABLES ON STOCK PERFORMANCE IN NIGERIA
    (Department of Banking and Finance, Nasarawa State University Keffi, 2019-01-04) Mungadi, Dauda Danladi; Nwala, Maureen Nneka; Abubakar, Idris Ayokanmi; Onibiyo, Ezekiel Rotimi
    The effect of macroeconomic variables on stock performance hos attracted considerable research interests. This is because mocroeconomic variables interplay serves as barometer for the economy measured by stock performance. This study examines the effect of selected macroeconomic variables on stock performance in Nigeria for the periods of 1983 to 2018 using Autoregressive Distributed Lag technique to analyse the dato. The study proxy stock performance with total market capitalisation white selected macroeconomic determinants used ore foreign workers remittanceā€¢, foreign portfolio, broad money supply and Gross Domestic Product growth rate. The study tests for stationarily of the time series secondary dato with Augmented Dickey Fuller Test and the result of the results of the test suggest that oil the dolo are stationary at first difference, exceptGross Domestic Product growth role that was stationary at level. The study found out that foreign workers remittances, foreign portfolio and broad money supply have significant positive effect on stock performance vjhiie Gross Domestic Product grovAh rale hos an insignificant effect on stock performances. Based on these findings, the siudy concludes that the selected macro determinants should attract government attention in Nigeria. In the light of the outcome of the study, the study recommends that the Central Bank of Nigeria should continue to design frameworks and policy that would promote and retain portfolio Investment in the country and also ensure further reduction In the cost of remittance into the country. That Securities and Exchange Commission and Nigerian Stock Exchange should strive to improve on market capitoUiation of stock market by attracting listing and increased trading activities with a platform that put attractive financial assets in the global market. A growing volume of studies such as (Maku & Atanda, 2010; Mandaci, Atkan, Gumu$ & Tvaronaviciene, 2013; Prempeh, 2016) have investigated the determinants of stock performance especially after the recent global financial crisis by focusing on several categories of macroeconomic variables that affect stock performance. Measures of stock performance differ across empirical studies Most studies used stock market All Shares Index, GOP, total market capitalisation, GDP growth rate and growth rate in market capitalisation. Stock performance is measured by total market capitalization of the Nigerian stock market in this study. The set of macroeconomic variables used to explain stock performance varies across empirical studies, but generally includes broad measures of macroeconomic performance, such as GDP growth rate, unemployment rate, interest rates, money supply, inflation and exchange rates.