TO GET THE COMPLETE JOURNAL/THESIS FOR TOPIC BELOW,
CALL: 08168759420, 08068231953
WHATSAPP: 08137701720
ANALYSIS OF INTEREST RATE AND STOCK PRICE IN AFRICA: CASE STUDY OF NIGERIAN LISTED FIRMS
Abstract: In this study, we investigate the impact of interest rate on stock prices in Nigeria by employing OLS model with monthly data spanning from January, 2000 to September, 2010. To prove our concept, we used Granger causality to test the direction and the causality between interest rate and stock prices in the context of Nigeria. The test results show that there is unidirectional causality between interest rate and stock price. This means that changes in the stock price explains the variations in the interest rate. The empirical results indicated that interest rate definitely has negative effect on stock price in Nigeria. The outcome also indicated unidirectional causality between interest rate and stock price.
Key words: inflation, interest rate, stock price, Nigeria stock market