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Dynamic interelationship between macroeconomic fundamentals and stock prices in Nigeria

This paper investigated the dynamic interrelationship between macroeconomic fundamentals and stock prices in Nigeria using time series data spanning from 1980 to 2016. The study made use of co-integration test and the error correction mechanism. Empirical estimates revealed pointedly that there is a long run correlation between macroeconomic fundamentals and stock prices in Nigeria. Similarly, in the short run, the previous values of money supply and interest rate were found to demonstrate a significant effect on stock prices. Also, the previous value of stock market return was found to show s…

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    from http://www.alliedacademies.org/articles/dynamic-interelationship-between-macroeconomic-fundamentals-andstock-prices-in-nigeria.pdf