Title: Effect of Monetary Policy on Stock Market Performance in Nigeria
Abstract: This study examined the impact of monetary policies on the performance on stock market performance in Nigeria for the period 2011 – 2018. The main aim of this study was to determine the impact of monetary policy on the stock market in Nigeria. The theoretical foundation of the study was the McKinnon–Shaw hypothesis. The technique employed was OLS multiple regression data was collected from secondary sources. The Nigerian Stock Exchange All Share Index was the proxy for the dependent variable. Monetary policy was measured by monetary policy rate, treasury bill rate, prime lending rate and deposit rate as the independent variables. The findings of the study show that the monetary policy rate has a positive and insignificant impact on stock market performance, the treasury bill rate has a negative and significant impact on stock market performance. The prime lending rate has a negative but insignificant relationship with stock market performance within the period of the study. Deposit rate has a positive and significant relationship with stock market performance. The study, therefore, recommends, among other things, that the monetary authorities can lower interest rates in order to keep the Nigerian stock market attractive to both local and international investors. This is also necessary in order to attract more investors and increase new issues, which will automatically increase the value of the market will result in improving the performance of the Nigerian stock market.
Publication Year: 2021
Publication Date: 2021-04-01
Language: en
Type: article
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Cited By Count: 5
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