AN ANALYSIS OF THE INTERRELATIONSHIP AND IMPACT OF STOCKMARKET, MICRO AND MACROECONOMIC FUNDAMENTALS ON STOCKPRICING IN NIGERIA

📄 Project Abstract

Since the Dutch Tulip Mania of the 1630s, cycles of bubbles and bursts in stock markets have become commonplace across the world, hence, this has gained a reasonable academic attention. However answers as to what causes a particular market crash remains context-specific and in most cases, weakly related to the overall question of what causes stock market crash and how it can be prevented. Consequently, the question of what causes a particular market crash remains context specific which has to be answered for all dips in the stock market. Recently, Nigeria Capital Market took a plunge downwards in March 2008 after more than four years of consistent super performance. As is the case in many other African countries, thus far, explanations are hardly empirics supported. As a result, specific drivers of the markets given the peculiarities of poor capitalization, weak underlying economic base and open capital accounts remain unexamined. This study employs three approaches with two data sourc...