COVID-19 PANDEMIC AND NIGERIAN STOCK MARKET CAPITALISATION

Muyiwa Ezekiel Alade (eze.alade@gmail.com), Sunday Amos Adeusi and Fisayo Oluwatoyin Alade
Additional contact information
Muyiwa Ezekiel Alade: Adekunle Ajasin University, Ondo State, Postal: Department of Accounting, , Nigeria, https://ijep.org/
Sunday Amos Adeusi: Adekunle Ajasin University, Ondo State, Postal: Department of Accounting, , Nigeria, https://ijep.org/
Fisayo Oluwatoyin Alade: Kwara State University, Malete, Kwara State, Postal: Centre for Ecological and Environmental Research, Management and Studies, , Nigeria, https://ijep.org/

Ilorin Journal of Economic Policy, 2020, vol. 7, issue 3, 12-23

Abstract: This study investigates the connection between COVID-19 confirmed cases and Nigerian stock market capitalisation. Daily recorded secondary data that cover a 3-month period covering 1 March to 31 May 2020 were sourced from the Nigerian Stock Exchange, Nigeria Centre for Disease Control and World Health Organisation websites. Vector regression model was employed for statistical analysis. The results show that the confirmed cases of COVID-19 have mixed association with the Nigerian stock market equity capitalisation, while the global announced confirmed cases demonstrate inverse relationship with the market capitalisation but are both statistically insignificant at 0.05 level. The implication is that, plausible severity of global health concern on emerging stock market can be waned if prompt precautionary measures are deployed. The study put forward the need for proactive media programmes by the government and the stock market leadership, capable of deterring sudden short-run effect of such unprecedented global health crises on sustainable growth of the capital market due to abrupt exit and/or restricted activities of the foreign investors and other stock market participants.

Keywords: Confirmed cases; COVID-19; Market capitalisation; Pandemic; Stock Market (search for similar items in EconPapers)
JEL-codes: F02 G01 G14 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ijep.org/issues/volume7issue72020/v3/Alade2020.pdf Full text (application/pdf)

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:ris:ilojep:0031

Access Statistics for this article

Ilorin Journal of Economic Policy is currently edited by Gafar Ijaiya, Ahmed Yakubu, Folorunsho Ajide and Godwin Oluseye Olasehinde-Williams

More articles in Ilorin Journal of Economic Policy from Department of Economics, University of Ilorin Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Akanbi (damiloladaniel2012@gmail.com).