Monetary Policy Instruments and Stock Market Returns Volatility in Nigeria

Emmanuel Othuke Akpokerere, Azuoma Caroline Onojaife and Elizabeth Eloho Osevwe-Okoroyibo
Additional contact information
Emmanuel Othuke Akpokerere: Department of Banking and Finance, Faculty of Administration and Management, Delta State University of Science and Technology, Ozoro Delta State, Nigeria
Azuoma Caroline Onojaife: Department of Office and Information Technology, Faculty of Administration and Management, Delta State University of Science and Technology, Ozoro Delta State, Nigeria
Elizabeth Eloho Osevwe-Okoroyibo: Department Accountancy, Faculty of Administration and Management, Delta State University of Science and Technology, Ozoro Delta State, Nigeria

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 6, 273-282

Abstract: The study examines monetary policies instruments impact on stock market volatility in Nigeria for the period of 1993-2022. The study identified the independent variables, namely; reserve requirement (RR), cash reserve ratio (CRR), discount rate (DR) and money supply (MS) which were analyzed in relation to stock market volatility proxied with all share index volatility (ASIV). The data was analyzed with descriptive statistics, correlation matrix several diagnostics tests (VIF, validity test, ADF and Johansen tests) and the multiple regression analysis. The findings revealed that RR, CRR and MS have significant effect on ASIV while DR has insignificant effect on ASIV in Nigeria. It was concluded that reserve requirement, discount rate and money supply exert significant effect on Nigerian economy. Thus, it thereby recommended that management of CBN should put modalities in place to aggressively control ASIV in Nigeria. CBN should put measures in place to increase CRR. This will provide banks opportunity to fund economic transaction in the Nigerian economy, thereby reducing ASIV.

Keywords: Reserve Requirement; Cash Reserve Ratio; Discount Rate; Money Supply and Stock Market Volatility (search for similar items in EconPapers)
JEL-codes: E1 E2 E3 E4 G1 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/17087/8352 (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/17087 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2024-06-30

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk (ilhanozturk@yahoo.com).