THE ROLE OF FOREIGN DIRECT INVESTMENT IN SHAPING NIGERIA’S STOCK MARKET PERFORMANCE

Authors

  • Nsikak Anietie Akpan Department of Accounting, Faculty of Business Administration, University of Uyo, Uyo, Akwa Ibom State, Nigeria
  • Blessing Kufreabasi Etuk Department of Accounting, Faculty of Business Administration, University of Uyo, Uyo, Akwa Ibom State, Nigeria

Keywords:

FDI, Market Capitalization, Share Price Index, Trade Openness, Stock Market.

Abstract

The study was carried out to examine the relationship between foreign direct investment and stock market performance in Nigeria. The study was anchored on Accelerator and Tobin q theories of investments. The study also adopted the ex post facto research design hence data covering the period 2000 to 2019 were obtained from secondary sources. Findings of the study revealed that trade openness and volume of stock market transactions have a significant positive association with foreign direct investment. The study further revealed that share price index has positive but insignificant association with foreign direct investment. Moreover, the study found that market capitalization has a significant negative relationship with foreign direct investment. The study, therefore, concludes that stock market performance influences the level of foreign direct investment in Nigeria

Downloads

Published

2025-02-19

Issue

Vol. 11 No. 4 (2023)

Section

Articles