Business & Entrepreneurship Journal

Macroeconomic Determinants of Share Prices in the Nigerian Capital Market

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  • Abstract

    This study aims to determine the effects of macroeconomic variables on share prices in the Nigerian capital market. Empirical results show that macroeconomic variables have varied effects on stock prices. Regressing secondary data on the all-share index on the consumer price index, interest rate and productivity index from 1985-2013 shows that there exists negative relationship between these variables and share prices necessitating the introduction of fiscal and monetary policies that will reduce inflation, interest rate and improve industrial production to improve corporate earnings, dividends, share prices, capital gains; reduce investor apathy to share trading, improve equity trading in the Nigerian capital market and speed recovery of the market from the recent crash.