• Chris O. Udoka Ph.D, MAMN, Department of Banking and Finance, Faculty of Management Sciences, Calabar – Nigeria
  • Mfon Joseph Nya M.Sc (Finance), Department of Banking and Finance, Faculty of Management Sciences, Calabar – Nigeria
  • James Godwin Bassey M.Sc (Finance), Department of Banking and Finance, Faculty of Management Sciences, Calabar – Nigeria



Absolute Stock Price, Gross Domestic Product, Exchange Rate, Efficient Market Hypothesis

Abstract [English]

This study examined the effect of macroeconomic determinants of stock price movements in Nigeria. To achieve this objective, data were gathered on macroeconomic variables such as gross domestic product, exchange rate, inflation, interest rate and absolute stock price were captured for the purpose of analysis. The autoregressive distributive lag (ARDL) model was used in analyzing the macroeconomic determinants of stock price movement in Nigeria. The augmented Dickey-Fuller (ADF) unit root test was also engaged in order to ascertain the stationarity or otherwise of the variables. The ADF unit root test revealed that only interest rate was stationary at levels while the remaining variables became stationary when differenced once. The ARDL findings revealed that the determinants variables (GDP, EXCHR, INTR, and INFL) were not jointly co-integrated with the dependent variable, ASTP, hence, no existence of a long run relationship. Conclusively, there was no long run relationship between macroeconomic determinants and stock price movements in Nigeria. It was recommended that, government should create conducive business environment, strengthen the real sector to stimulate the economy, boost savings and stock investment. Finally, government should fine tune its policies on exchange rate determination and setup a consistent policy plan to stimulate investment in the capital market.


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How to Cite

Udoka, C. O., Nya, M. J., & Bassey, J. G. (2018). THE EFFECT OF MACROECONOMIC DETERMINANTS OF STOCK PRICE MOVEMENTS IN NIGERIA. International Journal of Research -GRANTHAALAYAH, 6(1), 203–218.