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Economic and Financial Review

Authors

K. B. Ajide

Publisher

Research Department, Central Bank of Nigeria

Keywords

Stock Market, Nigeria

Abstract

The paper examines the impact of governance on stock market performance using quarterly data series spanning 1996Q1 to 2010Q4. An ARDL bound testing methodology was employed to explore such causal relationship. Long-run stable relationships were established through the error correction terms of each of the measures used to the tune of -0.4821,-0.4034 and -0.4080 for all share price index, market capitalisation and the value of total stock traded, respectively. Findings indicate that macroeconomic and financial stability should be constantly maintained and promoted as it constitutes a drag on the stock performance; any acts of corruption should be eschewed as it scares away potential investors into the country and the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government's commitment to such policies should be enhanced altogether.

Issue

52

Volume

3

Recommended Citation

Ajide, K. B. (2014). Quality of Governance and Stock Market Performance: the Nigerian experience. Economic and Financial Review, 52(3), 27-47.

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