Research Article

CAPITAL MARKET PERFORMANCE AND ECONOMIC GROWTH IN NIGERIA

Sa’adu, Abdul Hakeem1*
1 Department of Banking and Finance Nuhu Bammali Polytechnic, Zaria
* Corresponding author: saadabdulng@yahoo.com
Published: Jun, 2014
Pages: 204-224
Views: 38
Downloads: 15

Abstract

This study examines the impact of capital market performance on
economic growth of Nigeria for the period 1986 – 2013. Economic
growth was proxied by gross domestic product while capital market
performance was represented by market capitalization, total new issues,
volume of transaction and listed equities. Data was collected using
secondary source of data only. The technique employed was multiple
regression as tool of analysis for the study. The findings of the study
reveal that the capital market performance has positively and
significantly impacted on the Nigerian economy within the period of the
study. The study therefore, recommends among others that the Central
Bank of Nigeria (CBN), the Nigerian Stock Exchange (NSE) and
Security and Exchange Commission (SEC) should ensure free flow of
information in the market. This is necessary in order to attract more
investors and increase new issues which will automatically increase the
quantum of market capitalization that will result in increasing the
performance of the Nigerian capital market and hence, improves the
Nigerian economy.

Keywords

Economic Growth Capital Market Performance Listed Equities

References

  1. Adam, J. A., and Sanni, I. (2005). Stock Market Development and Nigeria's Economic Growth. Journal of Economics and Allied Fields, Vol. 2 No. 2, pp. 116-132.
  2. Adebiyi, M.A. (2005) . Capital Market Performance and The Nigerian Economic Growth. In Oluwatayo O.F. and Olasupo, A; Issues in Money, Finance and Economic Management in Nigeria. Lagos: University of Lagos Press.
  3. Adewoyin,K.O. (2004). The Nigerian Financial System: Money and Capital Market. Osun : New deal Publication Limited.
  4. Afolabi, L. (1991). Monetary Economics. Lagos: Heinemann Educational Books Nigeria Plc.
  5. Akingbohungbe, S. S. (1996 ) . The Role of the Financial System in the Development of the Nigerian Economy. Paper Presented at a Workshop Organized by Centre for Africa Law and Development Studies.
  6. Al-Faki, M. (2006). The Nigerian Capital Market and Socioeconomic Development. Paper presented at the 4th Distinguished Faculty of Social Science Public Lecture, University of Benin, 26 July, pp. 9-16 .
  7. Alile, H.I and Anao, R.A. (1990). The Nigerian Stock Exchange in Operation. Lagos: Academy Press.
  8. Anyanwu, J.C. (1996). Monetary Economics: Theory, Policy and Institutions. Lagos: Hybrid Publishers Limited.
  9. Anyanwu, J.C. (1998). Stock Market Development and Nigerian Economic Growth, Nigerian Financial Review, 7(2): 6-13.
  10. Atje, R. and Jovanovic, B. (1993). Stock Markets and Development. European Economic Review.
  11. Barlett, C. (2000). Stock Market Development and Economic Growth: Evidence from developing Countries.
  12. Bencivenga, V.R., Smith, B.D. and Starr, R.M. (1996). Transactions Costs, Technological choice and Endogenous Growth. Journal of Economic Theory.
  13. Best, J.W. and Khan, J.V. (1989). Research in Education. New Delhi: Prentice Hall of India Private Limited.
  14. Bhide, A. (1993). The Hidden Cost of Stock Market liquidity. Journal of Financial
  15. Central Bank of Nigerian (CBN) Statistical Bulletins of 2004, 2005, 2006 and 2008. Abuja: Central Bank of Nigeria Publication.
  16. Daniel, S. (1999). Understanding Capital Market and Secrets of Making Money on the Stock Exchange. Lagos: Macmillan Nigerian Publisher Ltd.
  17. Daniel, S. (2004). The Nigerian Capital Market. Lagos: Macmillan Nigerian Publisher Ltd.
  18. Demirguc-Kunt, A. and Levine, R. (1996). Stock Market Development and Financial Intermediaries. World Bank Economic Review.
  19. Demirguc-Kunt, A. and Levine, R. (1996). Stock Market Development and Firm Financing Choices. World Bank Economic Review.Vol. 10.
  20. Demirguc-Kunt, A. and Levine, R. (1996). Stock Markets, Corporate Finance and Economic Growth: An Over, World Bank Economic Review.
  21. Ekezie, E. S. (2002). The Elements of Banking: Money, Financial Institutes and Markets. Onitsha: Africana – Feb Publishers Limited.
  22. Emenuga, C. (1998). The Nigeria Capital Market and Nigeria's Economic Performance in the Capital Market and Nigeria's Economic Development. Proceedings of the One-day Seminar Held at the Nigerian Institute of International Affairs. Lagos by Nigeria Economic Society.
  23. Ewah, S.O.E., Esang, A.E., and Bassey, J.U. (2009). Appraisal of Capital Market Efficiency on Economic Growth in Nigeria. International Journal of Business and Management, December, pp. 219-225.
  24. Ezeoha, A., Ebele, O., and Ndi Okereke, O. (2009). Stock Market Development and Private Investment Growth in Nigeria. Journal of Sustainable Development in Africa, Vol.11, No.2.
  25. Goldsmith, R.W. (1969). Financial Structure and Development. New Haven, Conn: Yale University Press.
  26. Harris, R.F. (1997). Stock Markets and Development: A Re-assessment. European Economic Review, Vol, 1, pp136-139.
  27. Harrold, R.F. and Domar, E.C. (1957). "An Essay in Dynamic Theory, Capital Expansion Rate of Growth and Employment.
  28. Holmstrom, B. and Tirole, J. (1993). Market liquidity and performance monitoring; Journal of Political Economy, 101 (4): 678-709.
  29. Johansen, S. (1999). Statistical Analysis of Cointegration Vectors. Journal of Economics and Dynamics and Control. 12, 571 – 584.
  30. Kenneth, J.A. (1962). The Economic Implication of Learning by Doing, Delhi; Vrinda Publication Ltd.
  31. Khan, M. and Senhadji, B. (2000). Stock Markets in Developing Countries: Key issues and research agenda. World Bank Publication.
  32. King, R.G. and Levine, R. (1993). Finance, Entrepreneurship and Growth: Theory and Evidence, Journal of Monetary Economics. Vol. 32.
  33. Kyle, A. S. (1984). Market Structure, Information, Futures Markets and Price Formation' in G.Storey, A. Schmitz, and A.H. Sarris (eds.) International Agricultural Trade: Advanced Readings in Price Formation, Market Structure, and Price Instability Boulder, CO: Westview.
  34. La Porta, R. Lopez-de-Silansre, F., Shleifer, A. and Vishny, R. (2001). Corporate Ownership around the World. Journal of Finance. Vol. 54.
  35. La Porta, R. Lopez-de-Silansre, F., Shleifer, A. and Vishny, R. W.( 1997). Legal Determinant of External Finance. Journal of Finance. Vol.52.
  36. Levine, R. (1991). Stock Market, Growth and Tax Policy. Journal of finance, 46(4), 1445-1465.
  37. Levine, R. and Zervos, S. (1996). Stock Market Development and Long-Run Growth. Policy Research Working Paper. The World Bank, March.
  38. Levine, R. and Zervos, S. (1998a). Stock Market Banks and Economic growth. American Economic Review.
  39. Levine, R. and Zervos, S. (1998b). Capital Control Liberalisation and Stock Market Development. Stock Market Development and Long-Run Growth. Policy Research Working Paper. The World Bank, March.
  40. Mbat, D. O. (2001). Financial Management. Uyo: Domes Associates Publishers.
  41. Neter C., Luinted, K and Luscas, T.T. (1996). A Quantitative Reassessment of Fianance-Growth Nexus: Evidence a Multivariate VAR. Journal of Development Economics, 60, pp. 381 – 405.
  42. Nigeria Stock Exchange( 2004) Fact Book.
  43. Nwankwo, G. O. (1991). Money and Capital Markets in Nigeria Today. Lagos: University of Lagos Press.
  44. Nyong, M. O. (2003). Predictability and Volatility of Stock Return in Three Emerging Markets: Nigeria, South Africa and Brazil. Nigeria Journal of Economics and Development Matters 2(1): 12 – 29.
  45. Nyong, M.O.(1997). Capital Market Development and Long-run Economic Growth: The Theory, Evidence and Analysis. First Bank Review, pp. 13 – 38.
  46. Obstfeld, M. (1994). "Risk-Taking, Global Diversification, and Growth," American Economic Review, December 1994, 84(5), pp. 1310-1329.
  47. Okpara, G.C. (2006). Capital Market in the Development of Nigeria Economy: An Empirical Analysis. Nigerian Journal of Economic and Financial Research. Vol. 1
  48. Osinubi, T. S., and Amaghionyeodiwe, L.A. (2003). Stock Market Development and Long-run Growth in Nigeria. Journal of African Business, Vol. 4, No. 3, pp. 103-129.
  49. Schumpeter, R. (1912). Theorie der Wirtschaftlichen Entwicklung, Liepzig, Dunker and Humblot (The Theory of Economic Development). Harvard University Press, 1934.
  50. Securities and Exchange Commission (2005). The Impact of Electronic Technology on the Securities market in Nigeria. Issues in Capital Market Development, Securities Market Journal, vol. 4, pp, 94 – 99.
  51. Senbet, C.A. and Otchere, C.K. (2005). Financial Development the Structure of Capital Markets and the Global Digital Divide. IMF Working Paper.
  52. Shah, A. and Thomoh, S. (1997). Securities Market; Towards Greater Efficiency in India. New Delhi: Oxford University Publishers.
  53. Shliefer, and Summers (1988). Breach of Thrust in Hostile Takeovers. Ed. A. Auerbach, Corporate Takeovers: Causes and Consequences, University of Chicago Press, pp.33-56, Chicago.
  54. Solow, R.M. and Swan, T.W. (1956). A contribution to the Theory of Economics and Capital Accumulation Quarterly Journal of Economics. Retrieved on 15/09/2012 from http://links.jstor.org/sici.
  55. Soludo, C. (2006). Can Nigeria be the China of Africa? Lecture Delivered at the University of Benin Founders' Day, November 2006.
  56. Sule, O. K. and Momoh, O. C. (2009).The Impact of Stock Market Earnings on Nigeria per Capita Income. African Journal of Accounting,Economics, Finance and Banking Research, 5(5): 77-89.
  57. Suleiman, S. (1990). Understanding Finance and Investment. Kano: Samarib Publishers.
  58. Sullivan, A. and Sheffrin, S.M. (1996). Economics: Principles in action. Upper saddle River: Pears on Prentice Hall.
  59. The Nigerian Stock Exchange Fact book, various issues.
  60. Tobachmel, C.E. and Fidell, G. (1996). Stock Market and Economic Development. The Journal of Montrary Economics 46. Pp. 879 – 900.
How to Cite

Hakeem, S. A. (2014). CAPITAL MARKET PERFORMANCE AND ECONOMIC GROWTH IN NIGERIA. Nigerian Journal of Accounting Research, 10(1), 204-224.

S. A. Hakeem, "CAPITAL MARKET PERFORMANCE AND ECONOMIC GROWTH IN NIGERIA," Nigerian Journal of Accounting Research, vol. 10, no. 1, pp. 204-224, June 2014.

Share this article:
Facebook X / Twitter LinkedIn
Download PDF View Full Text (PDF) Back to Articles