期刊名称：Journal of Emerging Trends in Economics and Management Sciences
电子版ISSN：2141-7024
出版年度：2014
卷号：5
期号：1
页码：93-99
出版社：Scholarlink Resource Centre
摘要：Capital market provides the industries and governments long term funds to meet their long term capitalrequirement such as financing of fixed investment like buildings, plants, machinery, bridges, e.t.c. Therefore,despite all these enormous performance, capital market still faces setback in the economy. Capital market thathas been performing enormously in its operation is invariably affected by the level of inflation in Nigeria. Thestudy empirically examines the effect of inflation on capital market performance in Nigeria. In line with theobjectives of this study, secondary data were obtained from central bank of Nigeria statistical bulletin andSecurity exchange commission (SEC) covering the period of 1970 to 2010.Multiple regressions were employedto analyze data on variables such as inflation rate, market capitalisation, All-Share index, market volume andmarket turnover, and Gross Domestic Product with the adjusted R2 which significant at 0.1821(18.2%), itpresages that inflation accounted for 18.2% of the variation in the influence of the capital market performance.The effect of inflation on performance of Nigerian capital market is weak. All the measures showed a negativerelationship to inflation except MVOL which showed a deviation from a priori expectation as revealed by thepositive correlation between inflation and the market volume. It is therefore concluded that there is a negativerelationship between inflation and capital market performance. The result suggest that the Central Bank ofNigeria (CBN) should design and implement policy instruments that will maintain inflation at a reasonably lowlevel so that it will not wear away the real value of stock returns
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