Impact of Macroeconomic Fundamentals on Firm Share Performance: Evidence from Nigeria

Michael Segun Ogunmuyiwa



This paper examines the impact of macroeconomic indicators on the stock market by analyzing the relationship between macroeconomic fundamentals and performance of quoted firms’ shares on the Nigeria Stock Exchange (NSE) market. A sample of fifty (50) quoted firms across eight (8) major sectors of the market was selected for the study. Both static and dynamic panel regression techniques were employed on monthly data sourced from the NSE and the Central Bank of Nigeria (CBN) between January 2007 (2007:1) and December 2013 (2013:12). Empirical findings reveal that varying impacts exist between the macroeconomic indicators and firm share returns. The study further asserts that inflation rate, interest rate, crude oil price and lagged values of firm share returns are the major significant macroeconomic fundamentals influencing firm share returns in Nigeria.
Macroeconomic Indicators, Firm Share Returns.


Macroeconomic Indicators; Firm Share Returns; Panel Regression.

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