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Equity and Reserve Investment Funds on Capital Market Growth in Nigieria

Author

Listed:
  • Dr. Daniel Emmanuel

    (Bingham University Karu, Nasarawa State)

  • Associate Prof. Jonah Arumona

    (Bingham University Karu, Nasarawa State)

  • GOFWAN Hassan

    (Bingham University Karu, Nasarawa State)

Abstract

The study of equity investment and capital market growth in Nigeria is motivated by the fact that capital market liquidity is relatively shallow and inefficient, preventing needed funds for investment. This study examines the extent to which Equity Investment influences Capital Market Growth in Nigeria by analyzing reserve investment funds and equity investment funds. The data is secondary from Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics (1999 to 2022) and ex-post facto research design, time series was adapted. ARDL was use for the analysis. The findings revealed that equity investment funds have positive and significant effect, while a reserve investment fund is negative and insignificant on Capital market growth in Nigeria. The study concludes that equity investment funds stands out to be an effective tool for capital market growth. Therefore, it recommends that authorities should encourage and apply all necessary tools for equity investment funds diver sifications via policies to promote greater penetration on the part of institutional equity investors, Create informal equity investment in Nigeria due to thorny challenges drive from assessing finances.

Suggested Citation

  • Dr. Daniel Emmanuel & Associate Prof. Jonah Arumona & GOFWAN Hassan, 2024. "Equity and Reserve Investment Funds on Capital Market Growth in Nigieria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 206-222, January.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:1:p:206-222
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    References listed on IDEAS

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    5. Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
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