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Determinants of Share Price Movement in Nigeria -The Management Perspective

Hassan, Olanrewaju Makinde

Hassan, Olanrewaju Makinde 1

  1. Department of Business Administration, Faculty of Management Sciences, Kogi State University, Anyigba, Kogi State, Nigeria 1

Pages: 209-221

DOI: 10.18488/journal.62/2015.2.10/

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The study is motivated by the desire to investigate the determinants of share price movement given its fluctuation and oscillation over time. The study made use of secondary data sourced from the Central bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) for period between 1991 and 2013. Using an appropriate analytical tool such as the ordinary least square (OLS) research technique; our study revealed that none of the selected factors have impacted positively on foreign portfolio investment in Nigeria except for market capitalization that was positive and statistically significant as well. Therefore, the study recommended that the on-going reform in the Nigerian capital market be sustained, especially in the area of investors’ protection and confidence, infrastructural development, and accounting disclosure requirements.

Contribution/ Originality
This study has contributed to the existing literatures that stated inflation as a good determinant of share price movement from another perspective that shows and empirically proved that the exchange rate is a more viable determinant  of  the movement of share prices.


Determinants, Reforms, Share price, Accounting disclosure, Nigeria, Capital market, Foreign portfolio investment, Market capitalization, Investors’ confidence, Infractructural development.



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