This study investigated the effect of selected macroeconomic variables on market capitalization in Nigeria. The study adopted Nigerian stock market capitalization as the dependent variable, while macroeconomic variables such as gross domestic product, interest rate, inflation and exchange rate were used as the independent variables. Time series secondary data on the study variables were obtained for evaluation from the Central Bank of Nigeria Statistical Bulletin and the Nigerian Stock Exchange fact book for the period 2001 to 2018. The study employed descriptive statistics and multiple regression analysis based on E-views 10 computer software as the techniques for analysis. The results showed that gross domestic product has significant positive effect on market capitalization; exchange rate has significant negative effect on market capitalization; while interest rate and inflation have insignificant negative association with market capitalization in Nigeria. The study concluded that increasing national output in the economy of Nigeria would ultimately lead to an increase in market capitalization, which is good for developing economy like Nigeria, as it is likely to enhance economic growth and foster rapid development. Based on the findings, the study recommended that the regulatory authorities should formulate policies that would increase national output as it was established that gross domestic product has positive impact on market capitalization. Also, Government should put in place monetary and fiscal policies that would bring about stability in interest, inflation and exchange rates.
Venture Capitalization and Wealth Allocation: The Experience of Piggery Entrepreneurs in Abia State, Nigeria (Published)
This research work analysed venture capitalization and wealth allocation, the experience of piggery entrepreneurs in Abia State, Nigeria. The specific objectives analysed included the examination of the socio-economic characteristics of piggery entrepreneurs; source of venture capital, analyses of entrepreneurвЂ™s wealth status, estimation of the factors affecting wealth allocation, analysis of the determinants of venture capital and also, to ascertain the relationship between wealth allocation and venture capitalization of piggery entrepreneurs. Data collections were carried out through a simple random sampling technique and forty (40) piggery operators were chosen from the sample frame. The means of information sourcing was via well-structured questionnaire and oral interview. The analytical techniques were achieved via descriptive statistics, correlation modelling and multiple regression. The result obtained showed that majority of the piggery entrepreneurs were young, married and had household size ranging from 6-10 person with business experience of 11-20 years. Source of venture capital was mainly formal source. Firm size, access to credit value of stock and amount of equity shares were significant factors affecting wealth allocation. The major determinants of venture capitalization included personal savings, value of assets and availability of financial institution issuing the venture capital. There was a strong positive relationship between wealth allocation and venture capitalization. Entrepreneurs wealth status is high relevant in venture capitalization. Thus, it is recommended that piggery entrepreneurs should give attention to attention to building up adequate personal savings, enhance stock value and a strengthened linkage with capable financial institutions, with the essence that these would imbue better wealth allocation and venture capitalization capacity.