Stock Market Liquidity and Firm Performance in the Nigerian Stock Exchange
The paper extends the investigation on the relationship between liquidity and stock returns by examining the influence of market liquidity on stock returns in the Nigerian Stock exchange. Vector auto-regression model was employed in examining the impact of liquidity measures such as the volume of tr...
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Istanbul Commerce University
2020-05-01
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doaj-2b4dd8f9015f4b7b9268938d606d98362020-11-25T02:02:17ZengIstanbul Commerce UniversityInternational Journal of Commerce and Finance2149-96082149-96082020-05-01613140Stock Market Liquidity and Firm Performance in the Nigerian Stock ExchangeTarila BoloupremoThe paper extends the investigation on the relationship between liquidity and stock returns by examining the influence of market liquidity on stock returns in the Nigerian Stock exchange. Vector auto-regression model was employed in examining the impact of liquidity measures such as the volume of trading and turnover on stock returns for the period 1985-2015. Empirical results suggest that the higher the market liquidity (volume of trading and turnover), the higher the stock index returns. Thus, establishing a positive relationship between liquidity and stock returns of firms listed on the Nigerian stock market during the period examined after controlling for market size. This result is not in line with the negative relationship between liquidity and market return as obtained by studies on developed markets. http://ijcf.ticaret.edu.tr/index.php/ijcf/article/view/150liquiditystock returnsturnovertrade volume |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Tarila Boloupremo |
spellingShingle |
Tarila Boloupremo Stock Market Liquidity and Firm Performance in the Nigerian Stock Exchange International Journal of Commerce and Finance liquidity stock returns turnover trade volume |
author_facet |
Tarila Boloupremo |
author_sort |
Tarila Boloupremo |
title |
Stock Market Liquidity and Firm Performance in the Nigerian Stock Exchange |
title_short |
Stock Market Liquidity and Firm Performance in the Nigerian Stock Exchange |
title_full |
Stock Market Liquidity and Firm Performance in the Nigerian Stock Exchange |
title_fullStr |
Stock Market Liquidity and Firm Performance in the Nigerian Stock Exchange |
title_full_unstemmed |
Stock Market Liquidity and Firm Performance in the Nigerian Stock Exchange |
title_sort |
stock market liquidity and firm performance in the nigerian stock exchange |
publisher |
Istanbul Commerce University |
series |
International Journal of Commerce and Finance |
issn |
2149-9608 2149-9608 |
publishDate |
2020-05-01 |
description |
The paper extends the investigation on the relationship between liquidity and stock returns by examining the influence of market liquidity on stock returns in the Nigerian Stock exchange. Vector auto-regression model was employed in examining the impact of liquidity measures such as the volume of trading and turnover on stock returns for the period 1985-2015. Empirical results suggest that the higher the market liquidity (volume of trading and turnover), the higher the stock index returns. Thus, establishing a positive relationship between liquidity and stock returns of firms listed on the Nigerian stock market during the period examined after controlling for market size. This result is not in line with the negative relationship between liquidity and market return as obtained by studies on developed markets. |
topic |
liquidity stock returns turnover trade volume |
url |
http://ijcf.ticaret.edu.tr/index.php/ijcf/article/view/150 |
work_keys_str_mv |
AT tarilaboloupremo stockmarketliquidityandfirmperformanceinthenigerianstockexchange |
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1724953945004048384 |