Effect of Savings Deposit Rate on Stock Market Capitalization in Nigeria: An Empirical Investigation

Gbalam Peter Eze () and Nelson Johnny ()

International Journal of Business, Economics and Management, 2020, vol. 7, issue 4, 239-247

Abstract: This research plan is prepared to find out the impact of savings deposit rate on security market capitalization in Nigeria. The inquiry plan employed monthly data between January 2016 and December 2019. The data were collected from the publications of the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN). Variables on which data were sourced are stock market capitalization (MCAP), savings deposit rate (SDR) and bank lending rate (BLR) as a control variable. The data analysis was done via descriptive tools, Johansen cointegration test, ADF test of unit root and regression procedure. The investigation discovered a significant inverse association among savings deposit rate and security market capitalization. The research also discovered insignificant negative link between bank lending rate and stock market capitalization in Nigeria. The overall equation judging from the R2, Durbin-Watson statistics and F-statistics is significant. It is thus recommended that, at anytime the country intend to raise the level of stock market capitalization, government should formulate and implement policies to reduce savings deposit rate in Nigeria. Government should also implement policies to reduce bank lending rate to boast economic growth and as well raise the level of stock market capitalization in Nigeria.

Keywords: Stock market capitalization; Savings deposit rate; Bank lending rate; Descriptive statistics; Johansen cointegration test; ADF unit root test; Regression method (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.conscientiabeam.com/index.php/62/article/view/1248/1771 (application/pdf)
https://archive.conscientiabeam.com/index.php/62/article/view/1248/5050 (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:pkp:ijobem:v:7:y:2020:i:4:p:239-247:id:1248

Access Statistics for this article

More articles in International Journal of Business, Economics and Management from Conscientia Beam
Bibliographic data for series maintained by Dim Michael ().