analyses financial and macroeconomic data responsible for predicting stock
market in Nigeria using four company-specific variables and five macroeconomic
variables. The variables are inflation, investment, consumer price index,
unemployment, lending interest rate, net revenue, net income and net asset.
Discriminant analysis and artificial neural network were employed to determine
the variables responsible for good and bad investment choices. The result of study
has shown that earnings per share, lending interest rate, inflation and net
income are important variables that contributed towards good and poor
investment choices and the ANN model trained with scaled conjugate gradient
algorithm using five hidden nodes perform better in discriminating between good
and poor investment choices and has higher percentages of classifying groups.