A Panel Data Analysis of the Impact of Macroeconomic Indicators on Firms’ Shares Performance in Nigeria
A Panel Data Analysis of the Impact of Macroeconomic Indicators on Firms’ Shares Performance in Nigeria

Summary/Abstract: This paper contributes to the ongoing debate on whether the impact of macroeconomic indicators onthe stock market is positive or negative or of no effect by analyzing the relationship between macroeconomicfundamentals and performance of quoted firms on the Nigeria Stock Exchange market. A sample of fifty (50)quoted firms across eight (8) major sectors of the market was selected for the study. The static panel regressiontechnique was employed on monthly data sourced from the Nigeria Stock Exchange (NSE) and the CentralBank of Nigeria (CBN) between 2007:1 and 2013:12. Results from empirical findings reveal that varyingimpacts exist between the macroeconomic indicators and firm share returns in Nigeria. It goes further to affirmthat inflation rate, interest rate and exchange rate are the major significant macroeconomic indicators drivingfirm share returns in Nigeria.

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