Impact of Monetary Policy on Value of Stock Traded: Short Run and Long Run Evidence from Nigerian Stock Exchange (1987- 2017)
Chinedu Maurice Umezurike, Amalachukwu Chijindu Ananwude
Asian Journal of Advanced Research and Reports · pp. 1–9 · Published 12 Aug 2019
10.9734/ajarr/2019/v5i430136Abstract
This study examined the effect of monetary policy on value of stock traded in Nigerian Stock Exchange. Specifically, we ascertained the effect of monetary policy rate, liquidity ratio and loan to deposit ratio on value of stock traded using the Autoregressive Distribute Lag (ARDL) based on annual data from 1986 to 2017. Our findings showed that monetary policy rate, liquidity ratio and loan to deposit ratio have no significant effect on value of stock traded. Monetary policy rate maintained a negative relationship with value of stock traded, while liquidity ratio and loan to deposit ratio positively correlated with value of stock traded. We are vehemently of the view that expansionary monetary policy that guarantees adequate liquidity in the economy should be pursued vigorously by the Central Bank of Nigeria. Adequate level of liquidity offers firms’ in the stock market better access to financial resources which will increase their revenue and thus appreciation in their stocks trading.
Cited by 1
Jamilu S. Babangida, Asad-Ul I. Khan · Central Bank of Nigeria Journal of Applied Statistics · 2021
Related research
- Effect of Monetary Policy on the Performance of the Nigerian Capital Market (1986 – 2016): Stylized Facts from ARDL Approach — shares topic coverage
- Effect of Monetary Policy on Financial Intermediation in Nigeria — shares topic coverage
- Bank Lending Channel Effectiveness and Loan Sales in the US — shares topic coverage
- The Differentiated Research of China’s Monetary Policy’s Effect on Stock Price under the SVAR Model----Empirical Analysis Based on Different Economic Backgrounds — shares topic coverage
- Interactions between Asset Prices and Monetary Policy in Taiwan: A Structural VAR Model — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
1
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.