Do foreign risks affect the stock market in an emerging economy? A time-series analysis Online publication date: Thu, 30-Nov-2023
by Abraham Ayobamiji Awosusi; Huseyin Ozdeser; Mehdi Seraj
International Journal of Business and Emerging Markets (IJBEM), Vol. 16, No. 1, 2024
Abstract: The recent global uncertainty had influenced the choices of investors. As a result, investors may defer purchases and investments in the stock market owing to a wait-and-see policy in the face of global uncertainty. In this context, this study's main objective is to explore the link between global uncertainty and the stock market in Nigeria, utilising quarterly data ranging from January 2010 and December 2018. The study deployed ARDL and Toda-Yamamoto causality test to examine this interconnection. The finding from the ARDL bounds test revealed evidence of cointegration between the stock market index and its determinants in the long run. It further shows that the stock market is negatively affected by global risk, while it is evident that economic growth positively impacts the stock market in Nigeria. However, the exchange rate impacts on the stock market tend to be insignificant in the long run.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
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 and Emerging Markets (IJBEM):
Login with your Inderscience username and 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
Our Blog 
Follow us on Twitter 
Visit us on Facebook