Determinants of Stock Trading Volume in Nigeria: Money Demand Approach

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dc.contributor.authorSaibu, Olufemi Muibi
dc.contributor.authorAlenoghena, Raymond O.
dc.contributor.authorOlaniyi, Evans
dc.contributor.authorTewogbade, Seun
dc.date.accessioned2022-01-13T01:39:58Z
dc.date.available2022-01-13T01:39:58Z
dc.date.issued2016
dc.description.abstractThis study has investigated the determinants of stock trading volume using the demand for money approach. In order to establish the magnitude and direction of relationship between stock trading volume and other macroeconomic variables such as broad money, interest rate, foreign direct investment, exchange rate, income and global financial crisis for the period 1985 to 2014, an ARDL model was set up. The results showed that the exogenous variables studied have long run equilibrium relationship with the volume of transactions in the stock exchange. Specifically, while money supply exhibited strong positive significant relationship with stock volume, interest rate and exchange rate impact was negative and significant. The impact of income and foreign direct investment was positive but not significant. The dynamic error correction model shows that the system converges back to equilibrium at a speed of 41.3%. The CUSUM test reveals that irrespective of the downward trend in the volume of trading on the exchange in Nigeria for the period, stock trading volume has remained stable. The study recommends that policy makers in the country should take into account the influence of money supply, interest rate and exchange rate in the course of planning the target volume level of trading transactions on the floor of the Nigerian Stock Exchange.en_US
dc.identifier.citationSaibu M.O, Alenoghena R.O, Olaniyi E and Tewogbade S (2016) Determinants of Stock Trading Volume in Nigeria: Money Demand Approach Journal of Empirical Economics, , vol. 5, issue 2, 74-89en_US
dc.identifier.urihttps://ir.unilag.edu.ng/handle/123456789/10291
dc.language.isoenen_US
dc.publisherJournal of Empirical Economicsen_US
dc.subjectStock Markets, Trading Volume, Exchange Rate, Broad Money, ARDL.en_US
dc.titleDeterminants of Stock Trading Volume in Nigeria: Money Demand Approachen_US
dc.typeBooken_US
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