Evaluation of Effect of Global Economic Meltdown on Capital Market Performance

Onaolapo Adekunle Rahman, Ojebiyi Florence Bosede, Oyedare Olufemi Akinloye and Adedeji Elijah Adeyinka ()
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Onaolapo Adekunle Rahman: Department of Management and Accounting, Ladoke Akintola University of Technology, Ogbomoso
Ojebiyi Florence Bosede: Department of Management and Accounting, Ladoke Akintola University of Technology, Ogbomoso.
Oyedare Olufemi Akinloye: Bursary Department, Ladoke Akintola University of Technology, Ogbomoso
Adedeji Elijah Adeyinka: Department of Management and Accounting, Ladoke Akintola University of Technology, Ogbomoso

International Journal of Business and Social Research, 2013, vol. 3, issue 7, 54-62

Abstract: The recent financial crisis that loomed the global economy was considered more inclusive than any other period of financial turmoil in the past 60 years. This paper evaluates the implications of the global economic meltdown on the Nigerian Capital Market Performance using the market capitalization of the Nigerian Stock Exchange as a major indicator. When the global economic meltdown came, it poses a recession on the Market Capitalization and the volume of share index of the Nation. This study depends entirely on secondary data in form of annual aggregate time series data of Market capitalization (dependent variable), exchange rate, interest rate, inflation rate, market share index with Dummy variable to represent the period of economic crisis. Ordinary least square of multiple regressions was used to analyze the data into econometric model while F-statistics was used to test for the formulated hypothesis. This study depicts that the global economic meltdown has a negative effect on the Capital Market Performance. It was therefore recommended that the Federal government and the regulatory agencies (CBN, NSE, SEC etc.) should come up with intervention and fiscal policies that will suppress these effects and jumpstart the capital market and that the policies should be properly implemented and monitored.

Keywords: Market capitalization; Economic meltdown; Regression; Time series data; Share index (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:mir:mirbus:v:3:y:2013:i:7:p:54-62

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