Financial meltdown on the capital market: A study of the Nigerian stock market exchange.
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Date
2011-12
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Journal ISSN
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Publisher
Academy of Taiwan Business Management Review,.Taiwan Institute of Business Administration
Abstract
A major engine of economic growth and development of any nation is its capital market. Until
quite recently. the Nigerian capital market was the toast of many enlightened Nigerians both home
and abroad. This research study investigated the impact of financial meltdown on the capital market
with particular reference to the Nigerian Stock Exchange (NSE). In carrying out the study. survey
research design was adopted and thirty (30) observations were drawn each from the periods before
the crash and after the menace. Using Z test statistical analysis, two hypotheses tested with respect to
NSI-I All Share lndex (ASI) and market capitalisation were rejected implying that the tests were
statistically significant. On the contrary, the hypothesis tested on NSE market turnover was accepted
meaning that the observed difference in the values was statistically insignificant. Similarly, using
market model, it was discovered that there were significant changes in individual quoted securities
and expected returns in the period under consideration. Above all, the findings of the study revealed
that the financial meltdown impacted negatively on the operational performance and efficiency of the
Nigerian stock market. lt was recommended that the Nigeria government should inject physical cash
into the stock market as a way of bail out in order to restore the lost confidence in the market and
also the investors and stock market operators should play the games according to the rule.
Description
Keywords
Nigerian Stock Exchange, All Share Index, Financial Meltdown, Bubbles, Crashes