Economic and Financial Review


Central Bank of Nigeria


Stock market, Nigeria, Nigerian stock exchange, Quality governance


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.

Author Bio

Ajide, K. B. (Ph.D) is a staff of the Department of Economics, University of Lagos, Lagos, Nigeria.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Ajide, K. B. (2014). Quality of governance and stock market performance: the Nigerian experience. CBN Economic and Financial Review, 52(3), 27-47.

Included in

Finance Commons



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