IDEAS home Printed from
   My bibliography  Save this article

Exchange Rate and Stock Prices in Nigeria: Firm-Level Evidence


  • Oluwatosin Adeniyi
  • Terver Kumeka


This study examined the symmetry and asymmetry of the exchange rate-stock price nexus for 54 firms listed on the Nigerian Stock Exchange (NSE). We employed asymmetric Auto Regressive Distributed Lag (ARDL) model proposed for time series, using daily data for the period from December 12, 2001 to December 8, 2017 . For comparative purposes, we also estimated the symmetric version. In the linear model, we found insignificant relationship between exchange rate and stock prices in most of the firms. Similarly, in the NARDL estimations, we observed that exchange rate movements do not have asymmetric impacts on stock prices in almost all the firms. In line with these findings, we recommend that financiers cannot make informed investment decisions using information obtained from the exchange rate market. In addition, the monetary authorities may need to reconsider the strict use of exchange rate as a policy tool to attract foreign portfolio investment.

Suggested Citation

  • Oluwatosin Adeniyi & Terver Kumeka, 2020. "Exchange Rate and Stock Prices in Nigeria: Firm-Level Evidence," Journal of African Business, Taylor & Francis Journals, vol. 21(2), pages 235-263, June.
  • Handle: RePEc:taf:wjabxx:v:21:y:2020:i:2:p:235-263
    DOI: 10.1080/15228916.2019.1607144

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    As the access to this document is restricted, you may want to search for a different version of it.


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

    Cited by:

    1. Muntazir Hussain & Usman Bashir & Ramiz Ur Rehman, 2024. "Exchange Rate and Stock Prices Volatility Connectedness and Spillover during Pandemic Induced-Crises: Evidence from BRICS Countries," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 31(1), pages 183-203, March.
    2. Oyinlola Mutiu Abimbola & Adeniyi Oluwatosin & Kumeka Terver Theophilus, 2023. "Dependence between foreign trade performance and exchange rate volatility: Panel ARDL approach," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 9(1), pages 1-15, July.
    3. Saadati, Alireza & Honarmandi, Zahra & Zarei, Samira, 2020. "Real Exchange Rate Shocks and Export-Oriented Businesses in Iran: An Empirical Analysis Using NARDL Model," MPRA Paper 101554, University Library of Munich, Germany, revised 30 Jun 2020.
    4. Abdul RASHID & Aamir JAVED & Zainab JEHAN & Uzma IQBAL, 2022. "Time-Varying Impacts of Macroeconomic Variables on Stock Market Returns and Volatility : Evidence from Pakistan," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 144-166, October.

    More about this item


    Access and download statistics


    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:taf:wjabxx:v:21:y:2020:i:2:p:235-263. 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: Chris Longhurst (email available below). General contact details of provider: .

    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.