Nigerian Economic Society
Hi Guest,
Home | Paper Submission | Signup |
      
Providing intellectual leadership in economic management in Nigeria
IMPACT OF CAPITAL MARKET FINANCING ON NIGERIA’S INDUSTRIAL PERFORMANCE: An Empirical Analysis

IMPACT OF CAPITAL MARKET FINANCING ON NIGERIA’S INDUSTRIAL PERFORMANCE: An Empirical Analysis

 

Abstract: The capital market plays a vital role in providing long-term funding for businesses to expand. If this role is efficiently performed with the aim of industrialization, the industrial sector is expected to obtain the required funds from the market for expansion. This fact has been established in most developed economies. However, the low level of industrialization in Nigeria raises questions on whether the capital market has met the expectation of providing funds to drive industrial sector growth. Employing a firm-level perspective, this study examined the relationship between capital market financing and the extent of industrialization of firms listed on the Nigerian Stock Exchange. Specific attempt was made to see if capital market financing (debt and equity) contributes positively to the growth of the industrial sector relative to other sectors in the Nigerian capital market. The study employed data of all publicly-listed firms on the Nigerian Stock Exchange from 1980 to 2016, with these firms further grouped into their relevant industries. The transcendental logarithmic (translog) production function that incorporates debt and equities alongside the traditional labour and capital inputs was used to examine the impact of capital market financing on the progress of industrialization in Nigeria. Results from the analysis support the positive contribution of the capital market to the progress of industrialization, and the study recommends further redirecting of capital market funding towards improved industrial sector growth.

JEL classification: E 62, O16

Price: N500.00 | Add to cart
 

 

 

Login

Forget password? | Signup for Free!
Note: You must signup your email and create a password before you can register as an NES member
 

Latest News

NES-63RD-ANNUAL-CONFERENCE-2022

Conference virtual link: https://us02web.zoom.us/j/83983249180?pwd=aXFkRGpoMFFoN1lpcGlqTUFGdUFsUT0...read more


2022 ANNUAL CONFERENCE POSTER

Kano State, the commercial city of Northern Nigeria will host NES 63rd Annual Conference 2022. The c...read more


Nigerian Economic Society 63RD ANNUAL CONFERENCE 2022

The Nigerian Economic Society wishes to inform the general public on her forthcoming Annual Conferen...read more


63rd ANNUAL CONFERENCE ANNOUNCEMENT: CALL FOR ABSTRACTS

63rd ANNUAL CONFERENCE ANNOUNCEMENT 26 - 30 September 2022 Venue: Kano, Kano State, Nigeria ...read more


NEW EXECUTIVE COUNCIL OF THE NIGERIAN ECONOMIC SOCIETY

At the end of the Annual General Meeting (AGM) during the 62nd Annual Conference of the Society held...read more


E-Mail Subscription

VoguePayVisaMasterCard