EFFECT OF SELECTED FINANCIAL INSTRUMENTS ON CAPITAL MARKET DEVELOPMENT IN NIGERIA

SUNDAY UCHENDU

Abstract


The study examines the effects of selected financial instruments on capital market development in Nigeria from 2012 to 2022 using quarterly data. Bond and equity were used as proxies for financial instruments while market capitalization was used as proxy for capital market development. Ex post facto research design was adopted and ordinary least square method was used. The regression results revealed that bonds have a significant effect on capital market development in Nigeria as well as equity. Therefore, the study concluded that both bond and equity have significant effects on Capital development in Nigeria. Thus, it recommends that the market should be well supervised according to international best practices to attract more foreign investors.

Keywords


Bonds, Capital market, Equity share, Market capitalizations

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References


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