DETERMINANTS OF STOCK RETURN REVISITED: EVIDENCE FROM NIGERIA | Journal of Economics and Trade

Using the ARDL approach to cointegration and error correction model, this study explores the macroeconomic determinants of stock returns in Nigeria from 1985 to 2016. Our findings show that GDP has no effect on stock market returns in both the short and long run, while interest rates and money supply have a positive and substantial impact on stock market returns, whereas inflation has a negative impact on stock market returns in Nigeria.Our findings show that GDP is important both in the short and long run, and that interest rates and money supply have a positive impact on stock market returns in Nigeria, while inflation has a negative impact. These macroeconomic factors were also discovered to have a major impact on stock market returns in Nigeria.In general, the findings illustrate the need for government and monetary authorities to implement policies that promote long-term economic growth and development.

The CBN should stick to its economic activity and investment policy goals.

Please see the link - https://ikprress.org/index.php/JET/article/view/4585