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

Using the ARDL technique to cointegration and error correction model, this paper explores the macroeconomic drivers of stock returns in Nigeria from 1985 to 2016. Our findings reveal that GDP has no effect on stock market returns in the short and long term, however interest rates and money supply have a positive and considerable impact on stock market returns in Nigeria, whereas inflation has a negative impact. Our findings suggest 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 variables were also discovered to have a considerable impact on stock market results in Nigeria. The findings underline the importance of government and monetary policy.

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