Analysing Stock Market Reaction to Macroeconomic Variables: Evidence from Nigerian Stock Exchange (NSE) (Published)
This study examined the impact of some selected macroeconomic variables on stock market performance in the Nigerian Stock Exchange (NSE). The study adopted all share index (ASI) as proxy for stock market performance and the dependent variable, while the selected macroeconomic variables included broad money supply (BMS), interest rate (ITR), inflation rate (IFR), and exchange rate (EXR) used as the independent variables. Secondary data for the variables was sourced from Central Bank of Nigeria (CBN) Statistical Bulletins covering the period 1985 to 2017. The study employed multiple regression technique, Augmented Dickey-Fuller unit root test, Johansen co-integration test and Error Correction Model (ECM) based on the E-views 9.0 software as methods of data analysis. The analysis of data revealed that a long-run equilibrium and short-run dynamic relationships existed between the selected macroeconomic variables and stock market performance in the Nigerian Stock Exchange. Overall, the empirical results showed that all the independent variables had significant influence on stock market performance. The impact of the individual macroeconomic variables indicated that broad money supply and exchange rate had significant positive effect on all share-index, while interest rate and inflation rate exhibited an inverse relationship with all-share index. Based on the findings, the study recommended that the monetary authorities should put in place sound monetary policies that would bring about positive developments in the stock market.
The purpose of this research is to analyze how macroeconomics variables, such as interest rate (BI rate), inflation, exchange rate rupiah, GDP per capita and the money supply, influence the demands of equity funds in Indonesia. This research use time series data from 2001 through 2011quarter by using multiple linear regression model and Ordinary Least Square (OLS) method. The result of this research indicates that Net Asset Value of equity funds in Indonesia has increased in 2002 – 2004 in the period of the research. It is influenced by 4 strong macroeconomics indicators in Indonesia along with the improving economic of the country. Downward trends of interest rate happened in early 2002 until 2005 has encouraged investors to search another alternative investment instrument, so that the demands of equity funds increased.
This paper examines and ascertains how the contributions of Richard Cantillon have been relevant to the development of the Nigerian economy. In doing this, the economic thoughts of Richard Cantillon were critically examined in order to see how these issues raised have been affecting the Nigerian economy. Political economy and descriptive approaches were used to x-ray the relevance of Richard CantillonвЂ™s contributions to NigeriaвЂ™s development. His contributions among others include: the nature of wealth, social and economic organization of people, wages of labour, theory of values, population problems and the use of gold and silver, barter, prices, circulation of money, interest, foreign trade, foreign exchange and banking and credit. The findings of the study revealed that these contributions are of great relevance to economic development in generally, but have not specifically contributed to the development of Nigerian economy. This is seen in the areas of low per capita income, negative attitude to work, inevitable population problems, persistent increase in prices, high lending interest rate, unfavourable terms of trade, incessant and diversion of public funds into private business rather than the real economy, and without doubt Nigeria has no place in foreign trade. Based on the foregoing, it was concluded that all these ugly trends accounted for the reason why economic development is not at sight in Nigeria. Thus, it was recommended that the monetary authorities should initiate sound monetary policies. Also, these monetary policies should be complemented with effective fiscal policies in order to put the Nigerian economy back to path of economic growth and development.