Adesoye, A. Bolaji and Atanda, Akinwande AbdulMaliq (2012): Monetary Policy and Share Pricing Business in Nigeria. Forthcoming in: (2012): pp. 1-19.
Download (84kB) | Preview
The anatomy of Nigerian financial system is composed of the money and capital markets. Monetary policy is a framework used by the apex bank to regulate the flow of loanable funds in the economy, though the pricing of equity used by private investors to raise capital from the economy is carried out at the capital market end of the system. As earlier empirical studies have shown the relationship between monetary policy and stock market, this study provide a precise insight in the mechanism of interaction that co-exist between monetary policy and share pricing in Nigeria. The study identified money supply and interest rate (credit creation) as the main channels through which monetary policy influence sharing pricing in an open economy like Nigeria.
|Item Type:||MPRA Paper|
|Original Title:||Monetary Policy and Share Pricing Business in Nigeria|
|Keywords:||Monetary Policy, Share Pricing, Monetary instruments, Money supply, Equity/capital market, money market, financial system, IPO pricing, Nigeria|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing; Trading volume; Bond Interest Rates
G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
G - Financial Economics > G0 - General
|Depositing User:||Akinwande Atanda|
|Date Deposited:||10. Jan 2012 09:34|
|Last Modified:||12. Feb 2013 08:38|
CBN (2006): Monetary Policy Series: What is Monetary Policy? Central Bank of Nigeria, Monetary Policy Department. CBN/MPD/Series/61/2006.
CBN (2010): Monetary Policy Targets and Programme. http://www.cenbank.org/
Chuku, A.C. (2009): Measuring the Effect of Monetary Policy Innovations in Nigeria: A Structural Vector Autoregression (SVAR) approach. African Journal of Accounting, Economics, Finance and Banking Research, Vol. 5, No.5.
Gaumnitz, J.E. and A.E. Dougall (1980): Capital Markets and Institutions, 4th Edition, Engelwood Cliffs: Prentice-Hall Inc.
Maku, E.O. and A. A. Atanda (2009): Does Macroeconomic Indicators Exert Shock on the Nigerian Capital Market?. Paper No. 17917, Munish Publication, University of Demark. http://mpra.ub.unimuenchen.de/17917/1/DOES_MACROECONOMIC_INDICATORS_EXERT_SHOCK_ON_THE_NIGERIAN_CAPITAL_MARKET_.pdf
Maku, E.O. and A. A. Atanda (2010): Determinants of Stock Market Performance in Nigeria: Long Run Analysis. Journal of Management and Organizational Behaviour. Vol. 1, No. 3 (November).
Omotor, D.G. (2001): Monetary Policy and Economic Growth: Theoretical and Conceptual Issues, CBN Economic and Financial Review, Vol.45, No.4, Pg. 39-67
Osaze, E.B. (2007): Capital Market-African and Global. Lagos, Nigeria. The Book house company.
Wikipedia (2010): Monetary Policy. http://www.en.wikipedia org/wiki/ Monetary _policy.html