Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria

Babajide Abiola Ayopo; Lawal Adedoyin Isola; Somoye Russel Olukayode

Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria

Year 2016, Volume: 6 Issue: 1, 354 - 360, 01.03.2016

Babajide Abiola Ayopo Lawal Adedoyin Isola Somoye Russel Olukayode

Abstract

This study examined the relationship between macroeconomic variable volatility and stock market return within the context of Blanchard (1981) extension of the Hicks (1937) IS-LM hypothesis, using EGARCH estimation techniques to analysis monthly data sourced on the Nigerian economy from January 1985 to December 2013. Our result shows that stock prices responds significantly to innovations in the interest rate and the RGDP, we therefore recommends that policy makers on the one hand should consider volatility in both the interest rate and the RGDP when making policies aimed at enhancing stock market development. On the other hand, market practitioners are expected to make provisions for volatility in interest rate and the RGDP when making portfolio decisions.

Keywords

Interest Rate, Real Gross Domestic Product, All Share Price, Volatility, Exponential General Autoregressive Conditional Heteroskedascity

Year 2016, Volume: 6 Issue: 1, 354 - 360, 01.03.2016

Babajide Abiola Ayopo Lawal Adedoyin Isola Somoye Russel Olukayode

Abstract

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Details

Other ID	JA78DM78NF
Journal Section	Research Article
Authors	Babajide Abiola Ayopo This is me Lawal Adedoyin Isola This is me Somoye Russel Olukayode This is me
Publication Date	March 1, 2016
Published in Issue	Year 2016 Volume: 6 Issue: 1

Cite

APA	Ayopo, B. A., Isola, L. A., & Olukayode, S. R. (2016). Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria. International Journal of Economics and Financial Issues, 6(1), 354-360.
AMA	Ayopo BA, Isola LA, Olukayode SR. Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria. IJEFI. March 2016;6(1):354-360.
Chicago	Ayopo, Babajide Abiola, Lawal Adedoyin Isola, and Somoye Russel Olukayode. “Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria”. International Journal of Economics and Financial Issues 6, no. 1 (March 2016): 354-60.
EndNote	Ayopo BA, Isola LA, Olukayode SR (March 1, 2016) Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria. International Journal of Economics and Financial Issues 6 1 354–360.
IEEE	B. A. Ayopo, L. A. Isola, and S. R. Olukayode, “Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria”, IJEFI, vol. 6, no. 1, pp. 354–360, 2016.
ISNAD	Ayopo, Babajide Abiola et al. “Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria”. International Journal of Economics and Financial Issues 6/1 (March 2016), 354-360.
JAMA	Ayopo BA, Isola LA, Olukayode SR. Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria. IJEFI. 2016;6:354–360.
MLA	Ayopo, Babajide Abiola et al. “Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria”. International Journal of Economics and Financial Issues, vol. 6, no. 1, 2016, pp. 354-60.
Vancouver	Ayopo BA, Isola LA, Olukayode SR. Stock Market Response to Economic Growth and Interest Rate Volatility: Evidence from Nigeria. IJEFI. 2016;6(1):354-60.