In this study, Inflationary trend was explored to determine its impact on Nigeria Stock Exchange Market. Only secondary source of data was used for this research work. Four (4) variables were used to validate the reliability of this research work namely: inflationary rate, total value of Nigerian stock exchange market, government expenditure and currency exchange rate ranging from 1980 – 2014 i.e. thirty five (35) years of economic activities. The descriptive method was used to analyze the data generated for the research. General regression statistical tool was used to determine the relationship between the dependent and independent variables. The hypotheses were tested using probability plot and graphical summary statistics. From the findings, the researcher observed that Inflation, Government Expenditures and Exchange Rate are significant to Total Value of Nigeria Stock Exchange Transactions. By this we say, inflationary trend to a large extent has a tremendous effect on Nigeria stock exchange market
Abu, N. (2009) Does stock market development raise economic growth? Evidence from Nigeria.
Journal of Banking and finance. 1(1)15-26
Agenor, P. R. and Montiel, P. J. (1996): .Development Macroeconomics., Princeton, NJ: Princeton University Press.
Ajakaiye, O. and Fakiyesi, T. (2009). Global Financial Crisis. Discussion Series Paper 8: Nigeria. London: Overseas Development Institute.
Aluko, E. M. (2008). The Global Financial Meltdown: Impact on Nigeria's Capital Market and Foreign Reserves. http://www.gamji.com/aluko/aluko209.htm[downloaded [5-6-2010]
Aminu U. and Anono A. Z. (2012). Effect of Inflation on the Growth and Development of the Nigerian Economy (An Empirical Analysis), International Journal of Business and Social Science Vol. 3 No. 10 [Special Issue – May 2012] Pp.183 – 191
Awogbemi, C.A and Taiwo, J. K. (2012).Empirical Analysis of the Causes and Effects of Inflation in Nigeria. Journal of Economics and Sustainable Development www.iiste.org
Baekaert, G. and E.C. Engstrom (2009), Inflation and the Stock Market: Understanding the 'Fed Model'(June 2009). NBER Working Paper No. w15024. Available at SSRN: http://ssrn.com/abstract =1413588
Daferighe, E. & Sunday, C. S. (2012), The impact of inflation on stock market performance in Nigeria, American Journal of social and management sciences.
Daferighe, E.E. and Aje, S.O. (2009). The Impact Analysis of Real Gross Domestic Product, Inflation and Interest Rates on Stock Prices of Quoted Companies in Nigeria. International Research Journal of Finance and Economics. Issue 25.
Donwa, P. and Odia, J. (2011). Effects of the Consolidation of the Banking Industry on the Nigerian Capital Market. Journal of Economics, 2(1), 57-65.
Engle, R. F. and Rangel. J. G. (2005). The Spline GARCH Model for Unconditional Volatility and its Global Macroeconomic causes. Econometica, 50, pp 987-1007.
Ewah, S.O.E. Esang, A. E. and Bassey, J. U. (2009). Appraisal of Capital Market Efficiency on Economic Growth in Nigeria. International Journal of Business and Management, December, 219-225.
Falahati, A. Nouri, F. Rostami, A. (2012), The Effect of Inflation on Development of Stock Market, J. Basic. Appl. Sci. Res., 2(11)11460-11468, 2012.
Fama, E. F. (1981) "Stock Returns, Real Activity, Inflation and Money," American Economic Review71 (September 1981), 545-565,
Feldstein, M. (1982a), ‘Inflation, capital taxation, and monetary policy’, in R Hall (ed), Inflation: causes and effects, University of Chicago Press, Chicago, pp 153–167.
Friend, I. and Hasbrouck, J. (1981). Effect of inflation on the Profitability and Valuation of U.S. Corporations. University of Pennsylvania.
Gerolamo, D. (2001). Inflation and its effects on Investment. Retrieved from http:// econ10.bu.edu/Ee341_money/papers/Geramo_paper. htm on 1/9/2010.
Girma, F. D. (2012) Relationship between Inflation and Economic Growth in Ethiopia: An Empirical Analysis, 1980-2011, University of Oslo.
Keynes, J.M. (1930). Treatise of Money, Vol. II, New York: Harcourt, Brace and Company.
Kimani, D. K. & Mutuku, C. M. (2013), Inflation dynamics on the overall stock market performance: The case of Nairobi securities exchange in Kenya, Economics and Finance Review Vol. 2(11) pp. 01 – 11, January, 2013
Kolari, J. (2001). “Stock Prices and Inflation”. Journal of Financial Research
Kuttner, K. and Posen, S. (2000) “Inflation, Monetary Transparency and G3 Exchange Rates Volatility”, Institute for International Economics Workings Papers 006 Washington DC.
Maduka, A.C. and Onwuka, K.O. (2013). Financial Market Structure and Economic Growth: Evidence from Nigeria Data. Asian Economic and Financial Review. 3(1): 75-98
Melberg, H.O. (1992). Inflation: an overview of Theories and Solutions. (www.geocities.com/hmelberg/papers/921201.htm).
Modigliani, F. and Cohn, R. A. (1979) Inflation, Rational Valuation, and the Market. Financial Analysts Journal, 35: 24-44.
Nwankwo, G. O. (1991). Money and Capital Markets in Nigeria Today, University of Lagos Press Nigeria.
Ojo, M.O. (2000). The role of the Autonomy of the Central Bank of Nigeria (CBN) In Promoting Macroeconomic Stability??. Central Bank of Nigeria Economic and Financial Review, Vol.38, Number 1, March.
Omeke, P.C. and Ugwunyi, C.U. (2010) Money, Price and Output: A Causality Test for Nigeria. American Journal of Scientific Research ISSN 1456- 223X, Issue 8, pp.78-87. Euro Journals Publishing, Inc.
Omotor D G (2010), Relationship between Inflation and Stock Market Returns: Evidence from Nigeria, Delta State University, Journal of applied statistics Vol. 1 No. 1.
Orubu, C. O. (2009), “Inflation in Nigeria: Concept, Measurement and Control, Bullion, Central Bank of Nigeria, Vol.33 (1), January – March, 2009
Osaze, B.E. (2009). ?Paradigm Shift a Misplaced Concreteness and the Nigerian Financial System”. Inaugural lecture series.41. University of Benin. 40-41.
Pak, O. & Bhatti, R. H. (2013), Stock returns and inflation in Kazakhistan, Russia and Ukraine, International Journal of Economics and Finance studies Vol. 5, No 1, 2013 ISSN: 1309-8055.
Patra, T. & Poshakwale, S. (2006). Economic variables and stock market returns; evidence from The Athens stock exchange. Applied Financial Economics Vol. 16. 993-1005.
Sampson, E. (2009) Financial Meltdown: The Rate and Shape of Capital Markets. Zenith Economic Quarterly 4(1): 67-80
Svensson, L. E. (2000) “Open-Economy Inflation Targeting”, Journal of International Economics, Issues 50, pp 155-183
Taofik M.I. and Omosola M. A. (2013). The Relationship Between Stock Return and Inflation in Nigeria. European Scientific Journal February 2013 Edition Vol.9, No.4
Ugur, S. & Ramazan, S. (2005). Inflation, Stock Returns, and Real Activity in Turkey. The Empirical Economics Letters Vol, 4 (3), 181-192.
Paul, O. U., & Prince, O. C. (2017). Inflationary Trend and its Impact on Nigeria Stock Exchange Market. International Journal of Academic Research in Business and Social Sciences, 7(11), 115-126.
Copyright: © 2017 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode