Financial Deepening and Capital Market Returns in Nigeria

Ogbonna Udochukwu Godfrey; Ejem Chukwu Agwu

doi:doi:10.11648/j.jfa.20200804.13

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Financial Deepening and Capital Market Returns in Nigeria

Ogbonna Udochukwu Godfrey, Ejem Chukwu Agwu

Published in Journal of Finance and Accounting (Volume 8, Issue 4)

Received: 19 June 2020 Accepted: 1 July 2020 Published: 6 July 2020

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Abstract

This study applied the error correction model to examine the relationship between financial deepening and capital market returns in Nigeria. The study was conceived because of the importance of capital market as an engine and fulcrum that propel economic growth. As such, the degree of financial services it receives should be a matter of concern to finance and economic researchers. However, after empirical analysis of data obtained from the central bank of Nigeria and the National Bureau of Statistic, it was majorly found that the ratio of money supply to gross domestic product has a positive and significant impact on the returns of the capital market of Nigeria. It was also found that ratio of credit to private sector to gross domestic product has negative and significant influence on the return of the capital market in Nigeria. In the light of these findings, the researchers advise the central bank of Nigeria to always do proper evaluation and monitoring of the distribution of such financial services, aimed at ensuring it gets to the targeted individuals, thereby stimulating economic growth in Nigeria. In addition, supervisory authorities of the capital market in Nigeria should in her advisory role, organize technical sections for investors on the rechanneling of their returns in the exchange. This will go a long to increase the capitalization of the capital market.

Published in	Journal of Finance and Accounting (Volume 8, Issue 4)
DOI	10.11648/j.jfa.20200804.13
Page(s)	182-189
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

All Share Index, Financial Deepening, ECM, Nigeria

References

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APA Style

Ogbonna Udochukwu Godfrey, Ejem Chukwu Agwu. (2020). Financial Deepening and Capital Market Returns in Nigeria. Journal of Finance and Accounting, 8(4), 182-189. https://doi.org/10.11648/j.jfa.20200804.13

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ACS Style

Ogbonna Udochukwu Godfrey; Ejem Chukwu Agwu. Financial Deepening and Capital Market Returns in Nigeria. J. Finance Account. 2020, 8(4), 182-189. doi: 10.11648/j.jfa.20200804.13

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AMA Style

Ogbonna Udochukwu Godfrey, Ejem Chukwu Agwu. Financial Deepening and Capital Market Returns in Nigeria. J Finance Account. 2020;8(4):182-189. doi: 10.11648/j.jfa.20200804.13

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@article{10.11648/j.jfa.20200804.13,
  author = {Ogbonna Udochukwu Godfrey and Ejem Chukwu Agwu},
  title = {Financial Deepening and Capital Market Returns in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {4},
  pages = {182-189},
  doi = {10.11648/j.jfa.20200804.13},
  url = {https://doi.org/10.11648/j.jfa.20200804.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200804.13},
  abstract = {This study applied the error correction model to examine the relationship between financial deepening and capital market returns in Nigeria. The study was conceived because of the importance of capital market as an engine and fulcrum that propel economic growth. As such, the degree of financial services it receives should be a matter of concern to finance and economic researchers. However, after empirical analysis of data obtained from the central bank of Nigeria and the National Bureau of Statistic, it was majorly found that the ratio of money supply to gross domestic product has a positive and significant impact on the returns of the capital market of Nigeria. It was also found that ratio of credit to private sector to gross domestic product has negative and significant influence on the return of the capital market in Nigeria. In the light of these findings, the researchers advise the central bank of Nigeria to always do proper evaluation and monitoring of the distribution of such financial services, aimed at ensuring it gets to the targeted individuals, thereby stimulating economic growth in Nigeria. In addition, supervisory authorities of the capital market in Nigeria should in her advisory role, organize technical sections for investors on the rechanneling of their returns in the exchange. This will go a long to increase the capitalization of the capital market.},
 year = {2020}
}

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TY  - JOUR
T1  - Financial Deepening and Capital Market Returns in Nigeria
AU  - Ogbonna Udochukwu Godfrey
AU  - Ejem Chukwu Agwu
Y1  - 2020/07/06
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200804.13
DO  - 10.11648/j.jfa.20200804.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 182
EP  - 189
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200804.13
AB  - This study applied the error correction model to examine the relationship between financial deepening and capital market returns in Nigeria. The study was conceived because of the importance of capital market as an engine and fulcrum that propel economic growth. As such, the degree of financial services it receives should be a matter of concern to finance and economic researchers. However, after empirical analysis of data obtained from the central bank of Nigeria and the National Bureau of Statistic, it was majorly found that the ratio of money supply to gross domestic product has a positive and significant impact on the returns of the capital market of Nigeria. It was also found that ratio of credit to private sector to gross domestic product has negative and significant influence on the return of the capital market in Nigeria. In the light of these findings, the researchers advise the central bank of Nigeria to always do proper evaluation and monitoring of the distribution of such financial services, aimed at ensuring it gets to the targeted individuals, thereby stimulating economic growth in Nigeria. In addition, supervisory authorities of the capital market in Nigeria should in her advisory role, organize technical sections for investors on the rechanneling of their returns in the exchange. This will go a long to increase the capitalization of the capital market.
VL  - 8
IS  - 4
ER  -

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Author Information

Ogbonna Udochukwu Godfrey

Department of Management Science, Rhema University, Aba, Nigeria
Ejem Chukwu Agwu

Department of Banking and Finance, Abia State University, Uturu, Nigeria

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APA Style

Ogbonna Udochukwu Godfrey, Ejem Chukwu Agwu. (2020). Financial Deepening and Capital Market Returns in Nigeria. Journal of Finance and Accounting, 8(4), 182-189. https://doi.org/10.11648/j.jfa.20200804.13

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ACS Style

Ogbonna Udochukwu Godfrey; Ejem Chukwu Agwu. Financial Deepening and Capital Market Returns in Nigeria. J. Finance Account. 2020, 8(4), 182-189. doi: 10.11648/j.jfa.20200804.13

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AMA Style

Ogbonna Udochukwu Godfrey, Ejem Chukwu Agwu. Financial Deepening and Capital Market Returns in Nigeria. J Finance Account. 2020;8(4):182-189. doi: 10.11648/j.jfa.20200804.13

Copy | Download

@article{10.11648/j.jfa.20200804.13,
  author = {Ogbonna Udochukwu Godfrey and Ejem Chukwu Agwu},
  title = {Financial Deepening and Capital Market Returns in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {4},
  pages = {182-189},
  doi = {10.11648/j.jfa.20200804.13},
  url = {https://doi.org/10.11648/j.jfa.20200804.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200804.13},
  abstract = {This study applied the error correction model to examine the relationship between financial deepening and capital market returns in Nigeria. The study was conceived because of the importance of capital market as an engine and fulcrum that propel economic growth. As such, the degree of financial services it receives should be a matter of concern to finance and economic researchers. However, after empirical analysis of data obtained from the central bank of Nigeria and the National Bureau of Statistic, it was majorly found that the ratio of money supply to gross domestic product has a positive and significant impact on the returns of the capital market of Nigeria. It was also found that ratio of credit to private sector to gross domestic product has negative and significant influence on the return of the capital market in Nigeria. In the light of these findings, the researchers advise the central bank of Nigeria to always do proper evaluation and monitoring of the distribution of such financial services, aimed at ensuring it gets to the targeted individuals, thereby stimulating economic growth in Nigeria. In addition, supervisory authorities of the capital market in Nigeria should in her advisory role, organize technical sections for investors on the rechanneling of their returns in the exchange. This will go a long to increase the capitalization of the capital market.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Financial Deepening and Capital Market Returns in Nigeria
AU  - Ogbonna Udochukwu Godfrey
AU  - Ejem Chukwu Agwu
Y1  - 2020/07/06
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200804.13
DO  - 10.11648/j.jfa.20200804.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 182
EP  - 189
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200804.13
AB  - This study applied the error correction model to examine the relationship between financial deepening and capital market returns in Nigeria. The study was conceived because of the importance of capital market as an engine and fulcrum that propel economic growth. As such, the degree of financial services it receives should be a matter of concern to finance and economic researchers. However, after empirical analysis of data obtained from the central bank of Nigeria and the National Bureau of Statistic, it was majorly found that the ratio of money supply to gross domestic product has a positive and significant impact on the returns of the capital market of Nigeria. It was also found that ratio of credit to private sector to gross domestic product has negative and significant influence on the return of the capital market in Nigeria. In the light of these findings, the researchers advise the central bank of Nigeria to always do proper evaluation and monitoring of the distribution of such financial services, aimed at ensuring it gets to the targeted individuals, thereby stimulating economic growth in Nigeria. In addition, supervisory authorities of the capital market in Nigeria should in her advisory role, organize technical sections for investors on the rechanneling of their returns in the exchange. This will go a long to increase the capitalization of the capital market.
VL  - 8
IS  - 4
ER  -

Copy | Download