Authors :
Okereke, Ike Godslove; Amusa, Bolanle Olubunmi
Volume/Issue :
Volume 5 - 2020, Issue 12 - December
Google Scholar :
http://bitly.ws/9nMw
Scribd :
https://bit.ly/2NcfZxj
Abstract :
This study examined the effect of
macroeconomic variables on stock performance in
Nigeria. Macroeconomic variables that were used are
inflation rate, unemployment rate, real gross domestic
product and balance of payment. Stock performance was
measured by all shares index (LNASI). Unit root tests
were conducted using Augmented Dickey Fuller (ADF)
and Philip Perron test (PP). The result showed that all
variables were integrated in the same order 1(1).
Johansen co-integration test was conducted and it was
observed that there are long run relationship among
macroeconomic variables and stock performance. Vector
Error Correction Model (VECM) result showed that
inflation rate and unemployment had negative
significant effect on all shares index while balance of
payment and real gross domestic product had positive
effect on all shares index. The study concluded that for
stock exchange market to perform well, macroeconomic
variables must be favorable. This implies that these
variables must be stable so as to enable investors have an
assurance of their investment.
Keywords :
Macroeconomic Variables; Stock Exchange Market; All Shares Index; Inflation Rate; Unemployment Rate; Real Gross Domestic Product
This study examined the effect of
macroeconomic variables on stock performance in
Nigeria. Macroeconomic variables that were used are
inflation rate, unemployment rate, real gross domestic
product and balance of payment. Stock performance was
measured by all shares index (LNASI). Unit root tests
were conducted using Augmented Dickey Fuller (ADF)
and Philip Perron test (PP). The result showed that all
variables were integrated in the same order 1(1).
Johansen co-integration test was conducted and it was
observed that there are long run relationship among
macroeconomic variables and stock performance. Vector
Error Correction Model (VECM) result showed that
inflation rate and unemployment had negative
significant effect on all shares index while balance of
payment and real gross domestic product had positive
effect on all shares index. The study concluded that for
stock exchange market to perform well, macroeconomic
variables must be favorable. This implies that these
variables must be stable so as to enable investors have an
assurance of their investment.
Keywords :
Macroeconomic Variables; Stock Exchange Market; All Shares Index; Inflation Rate; Unemployment Rate; Real Gross Domestic Product
