sitelogo
 Home»Accountancy» The effect of capital market on the growth of the industrial sector - a study of Nigeria stock exchange

The effect of capital market on the growth of the industrial sector - a study of Nigeria stock exchange

 Department:Accountancy  
 By:usericon bobyuzee  

fblog
   Rating:  (5.0) votes1
   Rate this project   
   Price:₦2000
Abstract
This study examined the relationship between capital market and industrial sector development in Nigeria, utilizing annual time series data covering the period from 1980 to 2012. The study adopted both descriptive and analytical methodology in its investigation. The descriptive methods were used to analyze trend performances of the variables captured in the study. The analytical methodology employed modern econometric techniques such as the unit root test, co-integration test, granger causality test and the error correction mechanism (ECM) in the estimation of the relevant relationships. The results of the co-integration test showed that there existed a long run equilibrium relationship among the variables. The results of the granger causality test as presented showed that there is a bi-directional relationship between industrial output and market capitalization and between industrial output and number of deals, but a unidirectional causality relationship running from industrial sector development to value of transaction. The results of the short run dynamics revealed that capital market has positive and significant impact on industrial output in Nigeria via market capitalization and number of deals. On the other hand, value of transaction has negative and significant impacting industrial output in Nigeria during the evaluation period. The results also showed that real gross domestic product has a positive and significant impact on industrial output in Nigeria, while exchange rate and gross domestic investment have negative and significant relationship with industrial output in Nigeria. The study therefore recommended that the government should implement appropriate reform policies aimed at ensuring efficiency in the workings of the stock market in Nigeria. Also, there is need to reduce the cost of raising capital by firms on the stock as high cost and other bureaucratic delays could limited the use of capital market as veritable source of raising funds for investment. ...
Preview +
Other Accountancy project topics and materials you might be interested in
»The Impact of Accounting Ratio in Decision Making ( A Case Study of Nigeria Breweries Plc Enugu)
»The impact of budget and budgetary control in tertiary institutions ( A Case study of imo state university )
»Internal control as a tool for improving profitability
»Impact of computerization of accounting system of commercial banks ( A case study of union bank plc )
»Role of good accounting system in the management of private enterprise in Nigeria ( A Case Study of Nwaogo pam paper mills limited )
»The Impact of product development on banks performance ( A Case study of first bank plc )
»Effects of standard costing on the profitability of manufacturing companies (a case study of nigerian breweries plc, Ama, Udi local government of Enugu state)
»The role of accounting system in measuring organizational performance of transport company ( A Case study of ABC Transport )
»Auditing in Nigeria companies, problems and prospects
»Effective internal control as an aid to management efficiency ( Case Study of Nigeria Bottling Company Owerri )
»The impact of development finance institutions (DFIS) in economic development of Nigeria
»The effects of computerized accounting system on the performance of banking industry in Nigeria
»Value added tax (VAT) in Nigeria. Merging problems and prospect presented.
»The role of capital market in a developing economy ( A case study of the Nigeria stock exchange )
»An appraisal of fraud prevention measures in Nigerian banking sector ( Case study of access bank plc owerri )

UPLOAD A PROJECT

Do you have project materials to share? Upload and earn with it.