IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v7y2017i3p298-309.html
   My bibliography  Save this article

Risks, Bad News, and Good News of Exchange Rate Volatility and National Elections in Nigeria: (Empirical Evidence via Threshold GARCH and GARCH-inmean Methodologies)

Author

Listed:
  • David Iheke Okorie
  • Dak-Adzaklo Cephas Simon-Peter

Abstract

The nature and state of the Nigerian economy could only suggest lack of proficiency in policymaking; tool of the policy makers of Nigeria. It is however a fallacy because Nigeria do not lack right policies but the execution will of these policies. Using monthly series from 1999 to 2014 via the methodologies of Threshold GARCH and GARCH-in-mean , National Elections in Nigeria do not only influence significantly the Volatility or swings in the exchange rate of Naira but depreciates Naira further. The more this Risk is absorbed in the economy, the more the naira depreciates. Good news and bad news both significantly affect the exchange rate volatility significantly while bad news influences it more by which is in line with the findings of Dr. Oduh Moses and Ms. M. S. Priscilla, using Exponential GARCH to assess effects of Good and Bad information on exchange rate volatility of Nigeria. We recommend a strict restriction of the buying and selling of foreign currencies by the financial institutions at the appropriate periods concerning election campaign and advices banking campaign fund in domestic financial institutions as the monetary authority tighten their belt on sterilizing shocks on the exchange rate volatility.

Suggested Citation

  • David Iheke Okorie & Dak-Adzaklo Cephas Simon-Peter, 2017. "Risks, Bad News, and Good News of Exchange Rate Volatility and National Elections in Nigeria: (Empirical Evidence via Threshold GARCH and GARCH-inmean Methodologies)," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(3), pages 298-309, March.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:3:p:298-309
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Risks_Bad_News_and_Good_News_of_Exchange_Rate_Volatility_and_National_Elections_in_Nigeria.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Risks_Bad_News_and_Good_News_of_Exchange_Rate_Volatility_and_National_Elections_in_Nigeria.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Okorie, David Iheke & Lin, Boqiang, 2022. "Givers never lack: Nigerian oil & gas asymmetric network analyses," Energy Economics, Elsevier, vol. 108(C).
    2. David Iheke Okorie & Boqiang Lin, 2022. "Crude oil market and Nigerian stocks: An asymmetric information spillover approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4002-4017, October.
    3. David I. Okorie, 2021. "A network analysis of electricity demand and the cryptocurrency markets," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 3093-3108, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijarbs:v:7:y:2017:i:3:p:298-309. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.