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Saudi Journal of Business and Management Studies (SJBMS)
Volume-3 | Issue-09 | 1018-1024
Review Article
The Effect of the Nigeria Stock Market on Infrastructure Development in Nigeria
Ebere Chukwuma Christopher, Thankgod Obutor
Published : Sept. 30, 2018
DOI : 10.21276/sjbms.2018.3.9.2
Abstract
This paper investigated the influence of stock market activities in on the provision of infrastructure in Nigeria. In order to achieve the objectives of the study, data bordering on the activities of the stock market viz all share index, market capitalization and value of transactions and infrastructure development viz; gross fixed capital formation were collected from the CBN statistical bulletin and analysed using multiple regression analyses. The findings of the research showed that; there is a negative but significant relationship between all share index and gross fixed capital formation. There is positive and significant relationship between market capitalization and gross fixed capital formation. Finally, there is a negative non-significant relationship between value of transaction and gross fixed capital formation. Based on the findings, we conclude that the contribution of the Nigeria Stock market in infrastructure development is below expectation. It is therefore recommended that more development oriented securities be introduced into the Nigeria Stock market to help boost investment in infrastructure. More funds from institutional investors should be channeled into investment in long-term government securities to provide funding for infrastructure investments. Finally, we recommend that the activities in the Nigeria Stock market be deepened in order to foster stability in trading activities.
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