The Effects of Macr economic factors on Nigerian capital market: Sectoral approach

1
Dr.Abdullahi Ibrahim Bello
Dr.Abdullahi Ibrahim Bello
2
Dr.Abdullahi Ibrahim Bello and Famous Izedonmi
Dr.Abdullahi Ibrahim Bello and Famous Izedonmi
1 University of Ilorin, Nigeria

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There is a growing literature on how macro-economic variables can have effects on equity return in both developed and emerging stock markets. The objective of this study is to empirically test the performance of the Arbitrage Pricing Theory (APT) in the Nigerian Stock Exchange (NSE) for the period of 2000 up to 2004 on monthly base. In this paper, 3 macroeconomic variables (inflation, exchange rate and market capitalization) are investigated against 20 sectors of the Nigerian Stock Exchange to observe the effects of inflation exchange rate were carried out by Chen Roll & Ross (1986); Gangem, Brooks & Fatt (2000); Tursoy Gunsel Rjoub (2008); and Nikolaos, Grigoris, Nikolaos & Nikos (2009). This study in addition, includes Market capitalization variable. Using Ordinary Least Square (OLS) we observed there are no significant effects of those variables on the stocks’ return in Nigeria. The results are broadly consistent with similar studies carried for most developed and emerging economies.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Dr.Abdullahi Ibrahim Bello. 1970. \u201cThe Effects of Macr economic factors on Nigerian capital market: Sectoral approach\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 11 (GJMBR Volume 11 Issue B7): .

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GJMBR Volume 11 Issue B7
Pg. 25- 29
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Crossref Journal DOI 10.17406/GJMBR

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There is a growing literature on how macro-economic variables can have effects on equity return in both developed and emerging stock markets. The objective of this study is to empirically test the performance of the Arbitrage Pricing Theory (APT) in the Nigerian Stock Exchange (NSE) for the period of 2000 up to 2004 on monthly base. In this paper, 3 macroeconomic variables (inflation, exchange rate and market capitalization) are investigated against 20 sectors of the Nigerian Stock Exchange to observe the effects of inflation exchange rate were carried out by Chen Roll & Ross (1986); Gangem, Brooks & Fatt (2000); Tursoy Gunsel Rjoub (2008); and Nikolaos, Grigoris, Nikolaos & Nikos (2009). This study in addition, includes Market capitalization variable. Using Ordinary Least Square (OLS) we observed there are no significant effects of those variables on the stocks’ return in Nigeria. The results are broadly consistent with similar studies carried for most developed and emerging economies.

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The Effects of Macr economic factors on Nigerian capital market: Sectoral approach

Dr.Abdullahi Ibrahim Bello and Famous Izedonmi
Dr.Abdullahi Ibrahim Bello and Famous Izedonmi

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