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Dynamic links between the Nigerian equity market and those of selected regional and developed countries

The dynamic and growing interdependent nature of equity markets across the world has elicited the interest of investors and researchers alike. This study examines the dynamic interactions between the Nigerian stock market and selected regional and global equity markets spanning eight years, from 201...

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Autores principales: Obadiaru, Eseosa David, Obasaju, Barnabas Olusegun, Omankhanlen, Alex Ehimare, Eyiolorunshe, David Tunji
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7501435/
https://www.ncbi.nlm.nih.gov/pubmed/32995591
http://dx.doi.org/10.1016/j.heliyon.2020.e04782
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author Obadiaru, Eseosa David
Obasaju, Barnabas Olusegun
Omankhanlen, Alex Ehimare
Eyiolorunshe, David Tunji
author_facet Obadiaru, Eseosa David
Obasaju, Barnabas Olusegun
Omankhanlen, Alex Ehimare
Eyiolorunshe, David Tunji
author_sort Obadiaru, Eseosa David
collection PubMed
description The dynamic and growing interdependent nature of equity markets across the world has elicited the interest of investors and researchers alike. This study examines the dynamic interactions between the Nigerian stock market and selected regional and global equity markets spanning eight years, from 2011 to 2018, using daily index data. The generalised impulse response function was used alongside the Toda and Yamamoto Granger causality test to investigate the short-run dynamic linkages, while the normalized Johansen vector error correction estimates served to assess the long-run linkages given the existence of cointegration. Findings from the study revealed that the UK and the Ghanaian stock markets exert significant long-run impact on the Nigerian stock market, while vagaries from the US tend to exert more influence on the Nigerian stock market in the short-run. The study recommends that more regional efforts are needed to enhance the integration of stock markets in West Africa. The findings have implications for national and regional policymakers as well as portfolio investors.
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spelling pubmed-75014352020-09-28 Dynamic links between the Nigerian equity market and those of selected regional and developed countries Obadiaru, Eseosa David Obasaju, Barnabas Olusegun Omankhanlen, Alex Ehimare Eyiolorunshe, David Tunji Heliyon Research Article The dynamic and growing interdependent nature of equity markets across the world has elicited the interest of investors and researchers alike. This study examines the dynamic interactions between the Nigerian stock market and selected regional and global equity markets spanning eight years, from 2011 to 2018, using daily index data. The generalised impulse response function was used alongside the Toda and Yamamoto Granger causality test to investigate the short-run dynamic linkages, while the normalized Johansen vector error correction estimates served to assess the long-run linkages given the existence of cointegration. Findings from the study revealed that the UK and the Ghanaian stock markets exert significant long-run impact on the Nigerian stock market, while vagaries from the US tend to exert more influence on the Nigerian stock market in the short-run. The study recommends that more regional efforts are needed to enhance the integration of stock markets in West Africa. The findings have implications for national and regional policymakers as well as portfolio investors. Elsevier 2020-09-15 /pmc/articles/PMC7501435/ /pubmed/32995591 http://dx.doi.org/10.1016/j.heliyon.2020.e04782 Text en © 2020 The Authors http://creativecommons.org/licenses/by-nc-nd/4.0/ This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
spellingShingle Research Article
Obadiaru, Eseosa David
Obasaju, Barnabas Olusegun
Omankhanlen, Alex Ehimare
Eyiolorunshe, David Tunji
Dynamic links between the Nigerian equity market and those of selected regional and developed countries
title Dynamic links between the Nigerian equity market and those of selected regional and developed countries
title_full Dynamic links between the Nigerian equity market and those of selected regional and developed countries
title_fullStr Dynamic links between the Nigerian equity market and those of selected regional and developed countries
title_full_unstemmed Dynamic links between the Nigerian equity market and those of selected regional and developed countries
title_short Dynamic links between the Nigerian equity market and those of selected regional and developed countries
title_sort dynamic links between the nigerian equity market and those of selected regional and developed countries
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7501435/
https://www.ncbi.nlm.nih.gov/pubmed/32995591
http://dx.doi.org/10.1016/j.heliyon.2020.e04782
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