ONLINE PROJECT RESOURCE

ECONOMICS

ACCOUNTANCY

BUSINESS ADMINISTRATION

BANKING & FINANCE

POLITICAL SCIENCE

MARKETING

SOCIOLOGY

INSURANCE

SECRETARIAL STUDIES

INDUSTRIAL RELATIONS & PERSONNEL MANAGEMENT

MANAGEMENT SCIENCE EDUCATION

 

 

MSc/MBA PROJECTS

 

 

USEFUL RESOURCE

Nigeria Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOU ARE EXPECTED TO USE THIS PROJECT AS A GUIDE; HOWEVER, IF YOU WISH TO USE IT WHOLLY, YOU WILL BE RESPONSIBLE FOR ANY ADJUSTMENT YOUR SUPERVISOR MAY REQUIRE

IT WILL BE SENT TO YOUR E-MAIL AFTER PAYMENT SAME DAY

 

PROJECT TOPIC  : EVALUATING THE ROLE OF NIGERIAN STOCK EXCHANGE IN CAPITAL FORMATION IN NIGERIA (1986 – 2012)

PROJECT PROPOSAL

BACKGROUND TO THE STUDY
The rapid economic development of any economy depends, among other things, on ready access of adequate financial resources (Alile and Anao, 1990; Adeusi, et al 2013). The desire to develop financial market in an economy is intimately connected with the objective of accelerating industrial and agricultural development. Among this financial market is the Stock Exchange, which deals with the mobilisation of both medium and long-term capital funds (Sule and Momoh, 2009; Okodua and Ewetan, 2013).

The mechanism of Stock Exchange came into existence to enable investment, which were inherently illiquid to become liquid through re-conversion into cash at the decision of the investor without inconveniencing the company (Olowe, 1997). According to Okodua and Ewetan (2013), the stock market provides equity and a direct form of finance to potential investors for economic purposes. According to them, this role enables it to function as a critical long-term lubricant in the economic growth process.

Today, in many counties, Nigeria inclusive, the activities and performance of the Stock Exchange have much wider implication and these arise partly because of the growing influence of ideas and structures associated with the concept of democracy. The question of the ownership of a country’s assets and means of production can no longer be ignored. This was very obvious during the implementation of the Nigerian Enterprises Promotion Decree 1988 and the Exchange Control Act of 1962. Today, words like globalization have become familiar in economic and finance parlance and fast growing inter-dependence of economies and financial markets cannot be ignored.

The development of the capital market in Nigeria dates back to 1946, when the first government securities was floated; the institutional facilities for the operation was however absent and did not commence until fifteen years later, when the Lagos Stock Exchange (now The Nigerian Stock Exchange) was established in 1961 (Alile and Anao, 1990; Adeusi, et al 2013). Consequently, in 1953, the Federal Government set up a committee under Professor R.H. Barback to advise on ways and means to fostering a shares market in Nigeria. The report of the committee was published in 1959 and it recommended among other things:
1. The creation of facilities for dealing in shares.
2. The establishment of rules regulating transfer and;
3. Measures to encourage saving and issue of government and other organizations.

As a follow up to this report, the then Lagos Stock Exchange now Nigerian Stock Exchange was incorporated on 15th September, 1960 through the collective encouragement of the business community, the Nigerian Industrial Development Bank Limited (NIDB) and the Central Bank of Nigeria. On the 5th June, 1961, the Lagos floor of the Stock Exchange was officially opened and trading activities commenced with 19 securities listed (Alile and Anao, 1990).

The need for government recognition and protection led to the passing of the Lagos Stock Exchange Act 1961, and the Act restricted the business of stock-brokering in Nigeria in relation to quoted securities only to members of the Exchange. Activities during the first ten years of the exchange was dull, only 14 companies were listed as at the end of 1971, security transactions by volume and value stood at 952 and N18.1 million respectively during the same year. Government securities dominated the market in terms of value, accounting for 90.1 percent of the total, while industrial securities accounted for 78.6 percent of trading value. Over the years, the listing has increased tremendously.

In order to meet the aspiration of the users, the Lagos Stock Exchange was changed on the 2nd December, 1977 to the Nigerian Stock Exchange (Alile and Anao, 1990; Adeusi, et al 2013). At present, the Exchange has a number of branches in major cities in the country: the branch in Lagos was opened in 1961, Kaduna 1978, Port Harcourt 1980, Kano 1989, Onitsha February, 1990 and Ibadan August 1990. The latest additions include: Abuja, Benin, Uyo, Bauchi among others.

STATEMENT OF THE PROBLEM
Given the number of years since the Nigerian Stock Exchange has been established and the substantial financial resources available in the country, coupled with the existing institutions, one can claim that the entire spectrum of the capital market has not been sufficiently active, especially when compared with the capital unit of similar or lesser aged units in other developing countries. The factors responsible for this could be identified to include:
1. High cost of transaction
2. Lack of Transparency
3. Poor economic performance etc.

The performance of The Nigerian Stock Exchange was overcast in 2009 by the global financial and economic crisis, which was precipitated in August 2007 by the collapse of the sub-prime lending market in the United States. The crisis led to the crash of most other sectors and markets across Europe with consequent effect on developing economies especially oil-export dependent countries like Nigeria.

The spiral effect of the global economic crisis on The Nigerian Stock Exchange continued in 2009 with the exorbitant lending rate mounting pressure on the stock market as a result of massive borrowed fund in the market. The rush by stock investors to liquidate their investment to repay their loans in order to avoid the excessive lending rate caused the Nigerian stock market to crash. Sere-Ejembi (2008) notes that it is not the global financial crisis and the speculative subprime mortgage bubbles and bust alone that is responsible for the crash of the stock market, other contributory factors lent support. Some of these, namely: margin lending by the Deposit Money Banks (DMBs), stock price appreciation that had no correlation with the fundamentals in the quoting companies and local investors' opting to invest in foreign capital markets to take advantage of the low stock prices.

This study intends to evaluate the performance of the Nigeria Stock Exchange in terms of its trading activities and determine the extent to which its contributes to the capital formation process of the economy if at all there is causation between them.

OBJECTIVES OF THE STUDY
This study is primarily aimed at examining critically, the activities and performance of the Nigerian Stock Exchange. The study will also inquire further on the extent to which the Stock Exchange helps in the mobilization and allocation of national capital resources in the light of the privatization process.

RESEARCH QUESTIONS
The study will examine the following questions:
1. What is the rate of new issues on the stock exchange to date?
2. To what extent does the Nigerian Stock Exchange stimulate capital formation in the country?
3. How could the Stock market be positioned to stimulate investment generation in the country?

RESEARCH METHODOLOGY
The method of analysis to be used in this study shall be the Ordinary Least Square (OLS) technique i.e regression analysis. The relationship between the operations of the Stock Exchange and the level of capital formation in the country shall be examined using a multiple regression analysis. The gross capital formation (g.c.f.) shall be the dependent variable while the indicators of the operations of the Stock Exchange shall be the independent variables. The estimation period will cover between 1986 and 2012 due to non-availability of the all the necessary data to date.
RESEARCH HYPOTHESIS
The hypothesis that would be tested in this study is stated below:
H0: That the Stock Exchange stimulates capital formation in Nigeria.
H1: That the Stock Exchange does not stimulates capital formation in Nigeria.

SOURCES OF DATA
The data for this study would be obtained mainly from secondary sources, particularly from the publications of the Nigerian Stock Exchange (NSE), Central Bank of Nigeria (CBN) and that of the National Bureau of Statistics and relevant journals and financial newspapers.

SCOPE OF THE STUDY
The economy is a large component with lot of diverse and sometimes complex parts. This research work will only look at a particular part of the economy i.e the financial sector. This study will not cover all the facets that make up the financial sector, but shall focus only on the stock market and its activities as it impacts on the Nigeria capital formation. The empirical investigation of the role of the stock market in capital formation in Nigeria shall be restricted to the period between 1986 and 2012 due to non-availability of the all the necessary data to date.

PLAN OF THE STUDY
This study shall consist of six chapters. Chapter one, which is the introductory part contains the background of the study, the statement of the research problem, objectives of the study, research questions among others. Chapter two will deal be dedicated to the literature review. Chapter three examines the Nigerian Stock Exchange.

The methodology analysis will be examined in chapter four. This will also include models specification. Data presentation, analysis and interpretation will be covered in chapter five while the concluding part of the research work will be chapter six where the summary, conclusion and the recommendations will be discussed.


REFERENCES
Alile, H. I. and Anao, R. A (1990) The Nigerian Stock Exchange in Operation. Lagos. Academy Press.
Olowe, R. A. (1997) Financial Management: Concepts, Analysis and Capital Investment. Lagos: Brievly Jones Nigeria Ltd.
Okodua, H. and Ewetan, O. O. (2013) “Stock Market Performance and Sustainable Economic Growth in Nigeria: A Bounds Testing Co-integration Approach”. Journal of Sustainable Development. Vol. 6, no. 8, pp. 84-92.
Sere-Ejembi, A. A. (2008) “Nigerian Stock Market Reflection of The Global Financial Crisis: An Evaluation”. Central Bank of Nigeria Bullion. Vol. 32, no. 4, pp. 4-11.
Sule, K. O. and Momoh, C. O. (2009) “The Impact of Stock Market Earnings on Nigerian Per Capita Income”. African Journal of Accounting, Economics, Finance and Banking Research. Vol. 5, no. 5, pp.77-88.

 

 

PROJECT PROPERTIES
Project Status
Available
Number of Chapters
6
Number of Pages
89
Number of Words
14,201
Number of References
48
Project Level
B.Sc.
Price
N10,000 (Non-Negotiable)
Abstract, Regression Data and Results are included
How to Pay for this Project . . . .CLICK HERE

Keywords: stock exchange, market, nse, national stock exchange, nigeria stock exchange market, nigerian stock exchange market, lagos stock exchange, stock exchange in nigeria, stock market, stock market history, understanding the stock market, stock market research, nigeria stock market, nigerian stock market, stock market statistics, nigeria stock market report, nigeria stock exchange live, stockbrokers in nigeria

 

CONTACT CHANNELS

 E-mail: projectfaculty@yahoo.com OR projectfaculty@gmail.com OR mail us here

 

FRAUD ALERT
BEWARE OF FRAUDULENT PROJECT SITES!
Anyone that claims to be our agent/representative is a fraudster. Pay directly to ONLY our company's accounts NOT TO ANY INDIVIDUAL!
If we fail to send this project to you after payment, report to the bank you paid to, the Police and the EFCC with our Account Name and Account Number.