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Empirical Analysis Of The Relationship Between Macroeconomic Factors And Stock Returns In Nigeria

Author

Listed:
  • David UMORU

    (Associate Professor of Economics, Department of Economics, Edo University Iyamho, Edo State, Nigeria)

  • Alexander Olawumi DABOR

    (Department of Accounting, Edo University Iyamho)

Abstract

This research work is aimed at ascertaining the causality among stock returns, inflationary rate, and money flow alongside with currency conversion rate in Nigeria. This work used quarterly data 2000Q1 "“ 2016Q4. Pairwise econometric technique was employed for data estimation. Return on stock alongside with inflationary rate were seen to have no causal relationship but return on stock was seen to be mutually related with currency conversion rate. The findings further showed that returns on stock has a unidirectional causation with money flow. The findings also showed that inflationary rate and conversion rate have unidirectional causation .The results implied that financiers can employ macroeconomic factors to predict the of movement

Suggested Citation

  • David UMORU & Alexander Olawumi DABOR, 2019. "Empirical Analysis Of The Relationship Between Macroeconomic Factors And Stock Returns In Nigeria," Management Strategies Journal, Constantin Brancoveanu University, vol. 43(1), pages 38-46.
    • Handle: RePEc:brc:journl:v:43:y:2019:i:1:p:38-46
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    References listed on IDEAS

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