Inflation-hedging potentials of Commercial Services and Hotel Tourism Stocks in Nigeria

UDEH, Sergius Nwannebuike and NWUDE, E.C (2013) Inflation-hedging potentials of Commercial Services and Hotel Tourism Stocks in Nigeria. Research Journal of Finance and Accounting, 4 (13). ISSN 2222-2847 Vol.6, No.16, 2015

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Abstract

This paper investigates the extent to which stocks of commercial services and hotel tourism firms listed in Nigerian Stock Exchange (NSE) are a hedge against the actual inflation in Nigeria over the period 2000–2011. Actual inflation is computed as the estimates of the consumer price index. The study used real rate of return on equity and regression analysis to find the stocks that provide positive real return and offer inflation-hedging potentials respectively. The findings revealed that in terms of real return based on shareholders’ funds and total return to equity, all the firms were not susceptible to adverse effect of inflation but when based on dividend yield all the firms offered no significant hedge against inflation. Keywords: return on equity, real return, nominal return, consumer price index, inflation-hedging capacity, shareholders funds, dividend yield, and capital gain yield.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) L Education > L Education (General)
Divisions:	Faculty of Management and Social Sciences
Depositing User:	GOUNI ICT
Date Deposited:	23 May 2018 19:56
Last Modified:	07 Aug 2018 10:09
URI:	http://eprints.gouni.edu.ng/id/eprint/165

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