CORRUPTION AND STOCK MARKET PERFORMANCE IN NIGERIA
DOI:
https://doi.org/10.26458/1841Keywords:
Stock market performance, corruption, Share Price Index, Corruption Perception Index, Nigeria Corruption Ranking.Abstract
AbstractThe study examines the effect of corruption (using corruption perception index and Nigeria corruption ranking as proxies) on the stock market performance (proxied with share price index) in Nigeria. The study employed time series data spanning twenty years (1996-2016). Data availability especially on corruption indices was the major reason underlying the choice of period. The data were obtained from CBN Statistical Bulletin and Transparency International website. With the aid of SPSS version 20, the study used Multi-regression analysis and student t-test for the test of hypotheses. The study finds a significant positive correlation between corruption and stock market performance in Nigeria. The result reveals robust positive and significant relationships between Nigeria Corruption Ranking, Corruption perception index and Share price index. The result of the study explains the integration of graft into the Nigerian economic system. Therefore, adoption of a strong form of stock market efficiency by the Security and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for actualization by all listed firms in Nigeria is hereby recommended. In addition, we recommend that the Federal and State governments should formulate more result-oriented policies and rules that could help combat corruption more effectively.References
REFERENCES
Adesanya, F. (2016). Federal Government Releases list of recovered loot, Information Nigeria.
African Economic Outlook (2006). Nigeria. African Economic Outlook 2005-2006. Retrieved from www.oecd.org/africanoutlook on January 18, 2018.
Akinlabi, A.O., Hamed, B., & Awoniyi, M.A. (2011). Corruption, foreign direct investment and
Economic growth in Nigeria: An empirical investigation. Journal of Research in International Business Management, 1(9), 278-292.
Akinsulire, O. (2006). Financial Management Fourth Edition. Published by: Ceemol Nigeria
Limited. Lagos.
Ashaolu, T.O., & Ogunmuyiwa, M.S. (2011). An econometric analysis of the impact of
Macroeconomic variables on stock market movement in Nigeria. Journal of Business
Management, 3(1), 72-78.
Babalola, A. (2010). Corporate governance in banks: the Nigerian experience. Corporate
Ownership and Control International Journal, Ukraine, Special Conference Issue,
(4): 34-41.
Barasa, J.W. (2014). Macro-economic determinants of stock market performance in Kenya:
Case of Nairobi Securities Exchange. Msc. Degree Research Project submitted to the
School of Business University of Nairobi.
Black, B.S., & Gilson, R.J. (1998). Venture capital and the structure of capital markets: Banks
Versus stock markets. Journal of Financial Economics, 47(3), 243-277.
https//dx.doi.org/10.1016/50304-405X (97)00045-7.
Bolgorian, M. (2012). Corruption and Stock Market Development. A quantitative approach.
Physica A (390), 4514 – 4521.
Central Bank of Nigeria 1997. CBN Briefs Series Nos 97/01-97/12, Research Department.
EFCC (2005). Effect of corruption on Nigeria’s economy. Nigeria EFCC Information
Communication Technology Department. Abuja.
Fama, E.F. (2000). Short-Term Interest Rates as predictors of inflation. The Debt Market.
Cheltenham: Elgar.
Groves, R.E. (2004). Survey Methodology. Sage publications: Clifornia.
ICPC (2006). Nigeria and Corruption. Independent Corrupt Practices and other related offences Commission.
Hasan, A., & Nuri, B. (2013). Corruption, banking sector, and stock market development: A panel
Data analysis. International Association of Social Science Research – IASSR. European
Journal of Research on Education, 2013, Special Issue: Human Resource Management, 94 – 99.
Kpanie, A.F., Esumanba, S.V., & Sare, Y.A. (2014). Relationship between Stock Market
Performance and Macroeconomic Variables in Ghana. Issue in Business Management
And Economics, 2(3), 046-053.
Mustapha, M.A. (2008). Combating corruption in Nige
Downloads
Additional Files
Published
How to Cite
Issue
Section
License
The Annals of Spiru Haret University. Economic Series operates under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, granting authors full copyright of their work without restrictions. This licensing framework ensures that the journal’s content can be shared and adapted non-commercially, provided appropriate credit is given and derivative works are distributed under the same terms.
By adhering to these principles, the journal reaffirms its commitment to promoting high-caliber research and supporting the global exchange of economic knowledge.