EXCHANGE RATE MOVEMENT AND INVESTORS CONFIDENCE: EVIDENCE FROM NIGERIAN STOCK MARKET
Keywords:
Investors confidence, Institutional Investors, Volume of traded securities, Value of traded securitiesAbstract
This study examined the relationship between Naira foreign exchange rate and investors’ confidence in Nigeria stock market from 2005 to 2020. The volume and value of traded securities were used as proxies for investors’ confidence. The study made use of secondary data sourced from Nigerian Stock Exchange (NSE) facts book and Central Bank of Nigerian statistical bulletin for various years. The data were analyzed using pie chart, while the formulated hypotheses were regressed with the help of e-view package. From the result it was ascertained that Naira exchange rate has negative and insignificant relationship with investors’ confidence. The positive aspect of the result is that government and institutions can resort back to the stock market as a cheap source of fund instead of borrowing externally with the prevalent high exchange rate. The study recommends creation of more investment outlets or opportunities including retail and consumer outlets where people can invest as individuals and corporate bodies. Again capital market awareness creation about the available investment opportunities shouldn’t be neglected as it is capable of attracting both foreign portfolio and local investors.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 JOGAArticles submitted to JOGA should not have been published or are currently under review by another Journal. Kindly see the guide for the preparation of the manuscript for details. Successful submission of articles by author(s) for publication clearly implies that the work is not an infringement of any existing copyright warranty as JOGA reserves the right to be indemnified by the author(s) where any breach of such warranty is proven. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of JOGA once published unless otherwise agreed.
Permission clearance should be obtained by the author(s) where applicable for the use of any content of interest not originally created by them. This must be done before the submission of the article to JOGA. Failure to do so may lead to a lengthy delay in publication, as JOGA is unable to publish any article which has permissions pending. Thus, the rights JOGA requires are:
- Non-exclusive right to reproduce the material in the article or book chapters.
- Print and electronic rights.
- To use the material for the life of the work (for instance, there should be no time restrictions on the re-use of material).
Where tables, figures or excerpts of more than 250 words are reproduced from another source, it is expected that:
- Author(s) should obtain the necessary written permission in advance from any third-party owner of the copyright for the use in print and electronic formats of any of their text, illustrations, graphics, or other material in their manuscript. Permission must also be cleared for any minor adaptations of any work not originally created by the author(s). The author (s) should not assume that any content freely available on the web is free to use.
- Where the author adapts a significant number of any material, the author(s) must inform the copyright holder of the original work.
- Author obtains any proof of consent statements
- The author must acknowledge figure(s) and content adopted or adapted in work utilizing source(s) and further capture them in the list of references.
