Inflation Rate and Stock Returns in Nigeria

Gbande, C.P.A. & ADAMU, A., Inflation Rate and Stock Returns in Nigeria. Journal of Management Research and Development (JMRD), 5(2) pg. 1 – 13, 2016

19 Pages Posted: 5 Jun 2020

See all articles by Abdul Adamu

Abdul Adamu

Department of Business Administration, Nasarawa State University Keffi

Cephas Gbande

affiliation not provided to SSRN

Date Written: 2016

Abstract

The study examines the effect of inflation on stock returns of the stocks listed on the Nigerian Stock Exchange. Descriptive research design was used in the study and secondary data were collected from CBN statistical bulletin and NSE for the purpose of analysis. The analysis was done using ordinary least square regression and it was found that an inflation rate has a significant positive effect on stock returns on the NSE. This finding suggested that stock market returns may provide an effective hedge against inflation in Nigeria. It is recommended that policies geared at controlling inflation should take into cognizance the role of monetary policies as these will go a long way in further deepening of the stock market.

Keywords: Stock Returns, Inflation Rates, Consumer Price Index, Monetary Policy

JEL Classification: E31, G10

Suggested Citation

Adamu, Abdul and Gbande, Cephas, Inflation Rate and Stock Returns in Nigeria (2016). Gbande, C.P.A. & ADAMU, A., Inflation Rate and Stock Returns in Nigeria. Journal of Management Research and Development (JMRD), 5(2) pg. 1 – 13, 2016, Available at SSRN: https://ssrn.com/abstract=3596900 or http://dx.doi.org/10.2139/ssrn.3596900

Abdul Adamu (Contact Author)

Department of Business Administration, Nasarawa State University Keffi ( email )

P.M.B. 1022
Nasarawa state
Keffi, Nasarawa State 1022
Nigeria

Cephas Gbande

affiliation not provided to SSRN

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