EFFECT OF OIL PRICE VOLATILITY ON AVERAGE MONTHLY SHARE PRICE OF SUB-SAHARA AFRICAN COUNTRIES

Agbo, Elias Igwebuike (2020) EFFECT OF OIL PRICE VOLATILITY ON AVERAGE MONTHLY SHARE PRICE OF SUB-SAHARA AFRICAN COUNTRIES. Economics And Social Sciences Academic Journal, 2 (1). ISSN 5282 -0053

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Abstract

This study investigated the effect of oil price volatility on the average monthly closing share price of sub-Sahara African countrie using Nigeria as case study. The EGARCH methodology was used to invstigate this impact, while monthly frequency data for 1997:1 -2016:12 were employed . .Average monthly exhange rates and inflation rates were introduced as control variables. The results of the empirical investigation suggest that an asymmetric behavior is present and that there is volatility persistence.They also show that oil price volatility has a positive and significant impact on the volatility of the average monthly closing share price in the Nigerian capital market. The implication is that a unit increase in oil price causes some increase in the average monthly closing share price. . The study advises market participants to target oil price movements as an important instrument for predicting the volatility of share prices in sub-Sahara African nations

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 05 Feb 2020 08:33
Last Modified: 05 Feb 2020 08:33
URI: http://eprints.gouni.edu.ng/id/eprint/2516

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