Responsiveness of capital market development to manufacturing sector performance in Nigeria
by Josaphat U.J. Onwumere; O. Aigbodioh Cyprian; Chi Aloysius Ngong; Chinyere C. Onyejiaku; Shedrack Moguluwa
International Journal of Business Competition and Growth (IJBCG), Vol. 8, No. 3, 2023

Abstract: This study evaluates the responsiveness of capital market development to the manufacturing sector's performance in Nigeria from 1985 to 2020. Market capitalisation, the value of transactions, and turnover ratio were used. The manufacturing value-added measures manufacturing sector performance. The vector error correction model technique was employed. The result revealed a long-run relationship between capital market development and the manufacturing sector's performance. Market capitalisation, the value of transactions, and turnover ratio positively and significantly affect the manufacturing sector's performance. This implies the indicators influenced and respond to the direction of the manufacturing sector's performance. The government should encourage savings mobilisation and investments in the capital market by implementing policies that promote capital market financing. The government should apply policies that motivate manufacturing industries to obtain funds from the stock market to boost performance. The governments should promote stock market development such that the ratio of companies' turnover should boost the manufacturing sector's performance by facilitating the extensive documentation and bottlenecks in the stock market listing and issue procedures. The Security and Exchange Commission should implement regulations that improve market capitalisation, the value of transactions, and turnover ratio to promote manufacturing sector performance.

Online publication date: Fri, 05-Jan-2024

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Competition and Growth (IJBCG):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com