A Conceptual and Descriptive Approach to Capital Market Progression in a Developing Country: The Nigerian Perspective

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Date
2022-03
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Academic Research in Economics
Abstract
This study undertook a conceptual and descriptive approach to capital market progression in Nigeria, beginning from 1985 to 2019 using number of listed securities (a proxy for market accessibility), market capitalization (a proxy for market size), All Share Index (a proxy of market efficiency) and market depth (a proxy of ratio of market capitalization to gross domestic product (GDP) in the reference period. The period analyzed was segmented into a five year period for effective descriptive reporting purposes. Findings from the study showed that the Nigerian capital market has progressed steadily in terms of market size, efficiency and depth but was retrogressive in terms of the number of listed firms in the reference period. From the analysis, the study recommends that capital market operators and regulators should do more in the areas of listing more securities by reducing the obstacle for listing, efficiency and especially the depth of the market (increase trading in the floor) for it to effectively and efficiently provide move fund from surplus sector to deficit sector.
Description
Staff publication
Keywords
Capital Market, All share Index, Market Capitalization, Number of Listing
Citation
Ogbeide, S., Adedipe, O., Obadeyi, J. & Osawaru, F. (2022). A Conceptual and Descriptive Approach to Capital Market Progression in a Developing Country: The Nigerian Perspective. Journal of Academic Research in Economics, 14(1), 138-152.