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Presidential Election Results and Stock Market Performance: Evidence From Nigeria

Author

Listed:
  • A.E. Osuala
  • U.A. Onoh
  • G.U. Nwansi

Abstract

The study investigates the effect of Presidential election results on the performance of an emerging stock market using the case of the 2011 and 2015 Presidential elections in Nigeria. Adopting Event Study methodology to analyse the secondary data obtained from the Nigerian Stock Exchange (NSE) and some national dailies, the results of the study suggest that the 2011 presidential election result had negative significant impact on the performance of the stock market. On the other hand, the 2015 Presidential election result had positive but insignificant impact on the stock market as evidenced by the average and cumulative abnormal returns on the event date and one day post-event date- an indication that the result of the 2015 Presidential election was a welcomed development as leadership changed from PDP to All Progressives Congress (APC).

Suggested Citation

  • A.E. Osuala & U.A. Onoh & G.U. Nwansi, 2018. "Presidential Election Results and Stock Market Performance: Evidence From Nigeria," Applied Economics and Finance, Redfame publishing, vol. 5(2), pages 117-124, March.
    • Handle: RePEc:rfa:aefjnl:v:5:y:2018:i:2:p:117-124
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Aliyu, Shehu Usman Rano, 2020. "What have we learnt from modelling stock returns in Nigeria: Higgledy-piggledy?," MPRA Paper 110382, University Library of Munich, Germany, revised 06 Jun 2021.
    2. Nazreen Parveen Ali & Ashit Saha, 2021. "Market Efficiency of Indian Capital Market: An Event Study Around the Announcement of Results of Lok Sabha Election 2019," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 60-70, January.
    3. Kohnert, Dirk, 2023. "The aftermath of Nigeria’s 2023 presidential elections and its impact on the sub-region," MPRA Paper 116567, University Library of Munich, Germany.
    4. Kohnert, Dirk, 2023. "Les conséquences des élections présidentielles de 2023 au Nigéria et son impact sur la sous-région [The aftermath of Nigeria’s 2023 presidential elections and its impact on the sub-region]," MPRA Paper 116576, University Library of Munich, Germany.

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    More about this item

    Keywords

    human capital; investment; growth;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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