Market Liquidity and Stock Return in the Nigerian Stock Exchange Market
This research examined the effect of market liquidity, inflation, and exchange rates on stock return in Nigerian Stock Exchange market. The researchers used ex-post facto design and employed secondary data subjected to Auto-regressive Distributive Lag (ARDL) bound test method of analysis within the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Bina Nusantara University
2019-07-01
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| Series: | Binus Business Review |
| Subjects: | |
| Online Access: | https://journal.binus.ac.id/index.php/BBR/article/view/5588 |
| _version_ | 1797725802928799744 |
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| author | Ibrahim Bello Abdullahi Segun Kamorudeen Fakunmoju |
| author_facet | Ibrahim Bello Abdullahi Segun Kamorudeen Fakunmoju |
| author_sort | Ibrahim Bello Abdullahi |
| collection | DOAJ |
| description | This research examined the effect of market liquidity, inflation, and exchange rates on stock return in Nigerian Stock Exchange market. The researchers used ex-post facto design and employed secondary data subjected to Auto-regressive Distributive Lag (ARDL) bound test method of analysis within the period of twenty-one years. Findings reveal that in the short run, stock turnover, trading volume, exchange, and inflation rates have affected stock return positively and significantly. In the long run, market turnover has a positive effect. However, inflation and exchange rates have affected stock return negatively and significantly. Then, trading volume has a negative but insignificant effect on stock return, which is all at 5% level of significance. The researchers conclude that market liquidity, exchange, and inflation rates affect stock return. Therefore, the researchers recommend demutualization and transparent structures and adaptive method stabilization in exchange rate policies to increase stock market patronage, minimize transaction costs, and mitigate the market uncertainties. |
| first_indexed | 2024-03-12T10:36:27Z |
| format | Article |
| id | doaj.art-482d468830cf4fcb8a9931d7bd584da0 |
| institution | Directory Open Access Journal |
| issn | 2087-1228 2476-9053 |
| language | English |
| last_indexed | 2024-03-12T10:36:27Z |
| publishDate | 2019-07-01 |
| publisher | Bina Nusantara University |
| record_format | Article |
| series | Binus Business Review |
| spelling | doaj.art-482d468830cf4fcb8a9931d7bd584da02023-09-02T08:40:56ZengBina Nusantara UniversityBinus Business Review2087-12282476-90532019-07-01102879410.21512/bbr.v10i2.55883562Market Liquidity and Stock Return in the Nigerian Stock Exchange MarketIbrahim Bello Abdullahi0Segun Kamorudeen Fakunmoju1My name is DR I.B. ABDULLAHI an Associate Professor of finance in the department of finance, University of Ilorin, Ilorin, Kwara State, Nigeria. I sent a paper to your reputation journal outlet for publicationMy name is Mr Fakunmoju segun kamoru am a Ph.D finance student at Kwara State University, Ilorin, Kwara State, Nigeria. I sent a paper to your reputation journal outlet for publication. Thank you.This research examined the effect of market liquidity, inflation, and exchange rates on stock return in Nigerian Stock Exchange market. The researchers used ex-post facto design and employed secondary data subjected to Auto-regressive Distributive Lag (ARDL) bound test method of analysis within the period of twenty-one years. Findings reveal that in the short run, stock turnover, trading volume, exchange, and inflation rates have affected stock return positively and significantly. In the long run, market turnover has a positive effect. However, inflation and exchange rates have affected stock return negatively and significantly. Then, trading volume has a negative but insignificant effect on stock return, which is all at 5% level of significance. The researchers conclude that market liquidity, exchange, and inflation rates affect stock return. Therefore, the researchers recommend demutualization and transparent structures and adaptive method stabilization in exchange rate policies to increase stock market patronage, minimize transaction costs, and mitigate the market uncertainties.https://journal.binus.ac.id/index.php/BBR/article/view/5588market liquidity, stock return, nigerian stock exchange market |
| spellingShingle | Ibrahim Bello Abdullahi Segun Kamorudeen Fakunmoju Market Liquidity and Stock Return in the Nigerian Stock Exchange Market Binus Business Review market liquidity, stock return, nigerian stock exchange market |
| title | Market Liquidity and Stock Return in the Nigerian Stock Exchange Market |
| title_full | Market Liquidity and Stock Return in the Nigerian Stock Exchange Market |
| title_fullStr | Market Liquidity and Stock Return in the Nigerian Stock Exchange Market |
| title_full_unstemmed | Market Liquidity and Stock Return in the Nigerian Stock Exchange Market |
| title_short | Market Liquidity and Stock Return in the Nigerian Stock Exchange Market |
| title_sort | market liquidity and stock return in the nigerian stock exchange market |
| topic | market liquidity, stock return, nigerian stock exchange market |
| url | https://journal.binus.ac.id/index.php/BBR/article/view/5588 |
| work_keys_str_mv | AT ibrahimbelloabdullahi marketliquidityandstockreturninthenigerianstockexchangemarket AT segunkamorudeenfakunmoju marketliquidityandstockreturninthenigerianstockexchangemarket |