MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIA
Global market dynamics, investor behavior, regulatory frameworks, technological developments, and macroeconomic indicators are just a few of the many variables that influence capital market performance. The study looked at the factors that affect Nigeria's capital market performance. For this...
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Association of Social and Educational Innovation
2024-05-01
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| Series: | International Journal of Social and Educational Innovation |
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| Online Access: | https://journals.aseiacademic.org/index.php/ijsei/article/view/414 |
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| author | Yinka Ibrahim AGBEYINKA |
| author_facet | Yinka Ibrahim AGBEYINKA |
| author_sort | Yinka Ibrahim AGBEYINKA |
| collection | DOAJ |
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Global market dynamics, investor behavior, regulatory frameworks, technological developments, and macroeconomic indicators are just a few of the many variables that influence capital market performance. The study looked at the factors that affect Nigeria's capital market performance. For this study, a yearly time-series data set from 2001 to 2022 was obtained from the Securities Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). To estimate the model's parameters, data was subjected to linear regression analysis. The findings demonstrated that Nigeria's economic market capitalization is greatly increased by business earnings. Macroeconomic indicators have a major positive impact on Nigeria's economic market capitalization. Market capitalization is negatively impacted by exchange rates. This indicates that a rise in the exchange rate will result in a decline in market capitalization, while foreign direct investment has a favorable effect on Nigerian market capitalization. Therefore, the study suggested that the government enact laws and offer incentives that promote businesses' expansion and financial success. Tax incentives, better financing availability, and business-friendly laws can all help achieve this. This study suggests that the government should use monetary policy tools and foreign exchange reserves to mitigate excessive exchange rate volatility, control inflation, maintain low interest rates, and encourage sustainable economic growth in order to ensure stable macroeconomic conditions. Additionally, the government should develop policies that attract foreign direct investment, such as lowering bureaucratic barriers, guaranteeing political stability, and offering alluring investment incentives.
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| format | Article |
| id | doaj-art-864fe9878865467792278bfa88edc2a5 |
| institution | Kabale University |
| issn | 2393-0373 |
| language | English |
| publishDate | 2024-05-01 |
| publisher | Association of Social and Educational Innovation |
| record_format | Article |
| series | International Journal of Social and Educational Innovation |
| spelling | doaj-art-864fe9878865467792278bfa88edc2a52025-01-07T01:59:22ZengAssociation of Social and Educational InnovationInternational Journal of Social and Educational Innovation2393-03732024-05-011121MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIAYinka Ibrahim AGBEYINKA0University of South Africa Global market dynamics, investor behavior, regulatory frameworks, technological developments, and macroeconomic indicators are just a few of the many variables that influence capital market performance. The study looked at the factors that affect Nigeria's capital market performance. For this study, a yearly time-series data set from 2001 to 2022 was obtained from the Securities Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). To estimate the model's parameters, data was subjected to linear regression analysis. The findings demonstrated that Nigeria's economic market capitalization is greatly increased by business earnings. Macroeconomic indicators have a major positive impact on Nigeria's economic market capitalization. Market capitalization is negatively impacted by exchange rates. This indicates that a rise in the exchange rate will result in a decline in market capitalization, while foreign direct investment has a favorable effect on Nigerian market capitalization. Therefore, the study suggested that the government enact laws and offer incentives that promote businesses' expansion and financial success. Tax incentives, better financing availability, and business-friendly laws can all help achieve this. This study suggests that the government should use monetary policy tools and foreign exchange reserves to mitigate excessive exchange rate volatility, control inflation, maintain low interest rates, and encourage sustainable economic growth in order to ensure stable macroeconomic conditions. Additionally, the government should develop policies that attract foreign direct investment, such as lowering bureaucratic barriers, guaranteeing political stability, and offering alluring investment incentives. https://journals.aseiacademic.org/index.php/ijsei/article/view/414macroeconomicsopen economycapital marketinvestment |
| spellingShingle | Yinka Ibrahim AGBEYINKA MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIA International Journal of Social and Educational Innovation macroeconomics open economy capital market investment |
| title | MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIA |
| title_full | MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIA |
| title_fullStr | MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIA |
| title_full_unstemmed | MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIA |
| title_short | MACROECONOMIC DETERMINANTS OF CAPITAL MARKET PERFORMANCE IN AN OPEN ECONOMY: EVIDENCE FROM NIGERIA |
| title_sort | macroeconomic determinants of capital market performance in an open economy evidence from nigeria |
| topic | macroeconomics open economy capital market investment |
| url | https://journals.aseiacademic.org/index.php/ijsei/article/view/414 |
| work_keys_str_mv | AT yinkaibrahimagbeyinka macroeconomicdeterminantsofcapitalmarketperformanceinanopeneconomyevidencefromnigeria |