IMPACT OF STOCK MARKET PERFORMANCE ON FINANCIAL DEVELOPMENT IN NIGERIA

Nneka Okoye
Department of Banking and Finance
University of Nigeria, Enugu Campus
ABSTRACT
This study examines the impact of stock
market
performance
on
financial
development
in
Nigeria.
Financial
development was proxied by gross domestic
product while stock market performance
was measured by total new issues and
volume of transaction. The specific
objectives are to:
• Determine the impact of Market
Capitalisation
on
development in Nigeria

Identify the contribution of the
volume of transaction in the stock
market on financial development in
Nigeria

Assess the impact of all share index
on financial development in Nigeria

Data collected was both quantitative data
from secondary source. The technique
employed was multiple regression as tool of
analysis for the study. The findings of the
study show that the stock market
performance has positive and significant
impact on the Nigerian economy within the
period of the study (2010- 2015). The study
therefore, recommends among others that
the Central Bank of Nigeria (CBN), the
Nigerian Stock Exchange (NSE) and Security
and Exchange Commission (SEC) should
ensure free flow of information in the
market. This is necessary in order to attract
more investors and increase new issues
which will enhance financial development in

Nigeria.
Keywords: Stock Market, Financial Development, Nigeria, Quantitative Analyses.


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