INTERNATIONAL OIL PRICE MOVEMENTS AND THE MARKET VALUE OF ORDINARY SHARES IN THE NIGERIAN CAPITAL MARKET

Agbo, Elias Igwebuike (2021) INTERNATIONAL OIL PRICE MOVEMENTS AND THE MARKET VALUE OF ORDINARY SHARES IN THE NIGERIAN CAPITAL MARKET. International Research Journal of Management and Commerce, 8 (2). pp. 1-24. ISSN 2348-9766

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Abstract

This study explored the effect of international oil price movements on the market value of ordinary shares in the Nigerian capital market using monthly frequency data that cover the period from January,1997 to August 2020. It used the non-linear autoregressive distributed lag methodology for data analysis. The results of the empirical study suggest that oil price movements have positive and significant effect on the market value of the Nigerian capital market. They also suggest a long-run and asymmetric relationship between the two variables. The study recommends that Nigeria should devise strategies that can ensure stability in their capital markets .It can do this by vigorously pursuing pro-growth policies irrespective of the fluctuations in oil price and other macroeconomic variables. It advises market participants to target oil price movements as an important instrument for predicting the volatility of Nigeria’s stock market returns.

Item Type: Article
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 04 Sep 2021 22:48
Last Modified: 04 Sep 2021 22:48
URI: http://eprints.gouni.edu.ng/id/eprint/3095

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