TY  - JOUR
T1  - Macroeconomic Indicators and Stock Price Movement Nexus: A Study of the Nigerian Stock Market
AU - Alex Ehimare, Omankhanlen AU - Esther Johnson, Senibi AU - Victoria Kenny, Senibi 
JO  - The Social Sciences
VL  - 11
IS  - 13
SP  - 3294
EP  - 3306
PY  - 2016
DA  - 2001/08/19
SN  - 1818-5800
DO  - sscience.2016.3294.3306
UR  - https://makhillpublications.co/view-article.php?doi=sscience.2016.3294.3306
KW  - Stock price
KW  -stock market and investment
KW  -investors
KW  -vector error correction mechanism
KW  -macroeconomic variables
AB  - This study explored the nature of the connection existing amongst movements in stock prices and macroeconomic activities in the Nigerian stock market. Different attempt have been made to find the relationship between macro-economic factors and stock prices in several capital markets, necessitating the use of different models. Co integration regression analysis and vector error correction mechanism was used to capture both the short run dynamics and long run relationship between the macroeconomic indicators and share prices from 1985-2014 since it captures the pre and post reform adjustment in the long run. The findings reveal that inflation rate increases in the same direction with share prices which aligns with theoretical expectation which is as a result of investors perceptionthat the stock market have an inflationary hedge in the post structural adjustmentperiod. While exchange rate increases in the same direction as share prices because with a rise in the exchange rate of a country, the stock prices of the country would become cheap and consequently attractive to Foreign investors. This study recommends that investors should watch the trend of macroeconomic variables fluctuations in order to predict stock price movement.
ER  -