IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE
Stock market volatility influences investor’s participation in the stock market of any nation. The global pandemic created a lot of uncertainty about future of the economy, especially among developing stock market, like the Nigerian stock market. The emergence of COVID-19 pandemic impacted differen...
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| Format: | Article |
| Language: | English |
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Kwara State University, Malete Nigeria
2022-12-01
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| Series: | Malete Journal of Accounting and Finance |
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| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/10 |
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| _version_ | 1823859658332307456 |
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| author | Oyewale Temilola Christiana Muftau Adeniyi Ijaiya Kasali Kayode Rafiu |
| author_facet | Oyewale Temilola Christiana Muftau Adeniyi Ijaiya Kasali Kayode Rafiu |
| author_sort | Oyewale Temilola Christiana |
| collection | DOAJ |
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Stock market volatility influences investor’s participation in the stock market of any nation. The global pandemic created a lot of uncertainty about future of the economy, especially among developing stock market, like the Nigerian stock market. The emergence of COVID-19 pandemic impacted different sectors of Nigeria's economy in diverse ways and this affected investor’s confidence in the Nigeria stock market. This study investigated the impact of COVID-19 pandemic on the sub-sector indices in the Nigeria stock exchange market. The study employed ex-post facto research design to determine the impact of COVID-19 infection rates and COVID-19 death rates on stock price volatility of sub-sector indices in the Nigeria stock exchange market, within the period of 2nd March 2020 to 28th February, 2022. The study employed GARCH and DCC-GARCH and found that COVID-19 pandemic (infection and death rates) had significant effect on the volatility of sub-sector indices in the Nigeria stock market, and that there was significant volatility transmission among the sub-sector indices of the Nigerian stock market during the COVID-19 pandemic period. The study recommends that policy makers should provide support to companies that were badly hit during the pandemic, and also encouraged portfolio managers to understand the nature of risk attached to stocks selected to be in portfolio of their investors and be aware of best way to mitigate adverse risk effect.
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| format | Article |
| id | doaj-art-fd853b9af9894692bcb38716a326d4e2 |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-fd853b9af9894692bcb38716a326d4e22025-02-10T23:06:40ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032022-12-0132IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE Oyewale Temilola Christiana0Muftau Adeniyi Ijaiya1Kasali Kayode Rafiu2Kwara State University, Malete, Kwara State, NigeriaKwara State University, Malete, Kwara State, NigeriaKwara State University, Malete, Kwara State, Nigeria Stock market volatility influences investor’s participation in the stock market of any nation. The global pandemic created a lot of uncertainty about future of the economy, especially among developing stock market, like the Nigerian stock market. The emergence of COVID-19 pandemic impacted different sectors of Nigeria's economy in diverse ways and this affected investor’s confidence in the Nigeria stock market. This study investigated the impact of COVID-19 pandemic on the sub-sector indices in the Nigeria stock exchange market. The study employed ex-post facto research design to determine the impact of COVID-19 infection rates and COVID-19 death rates on stock price volatility of sub-sector indices in the Nigeria stock exchange market, within the period of 2nd March 2020 to 28th February, 2022. The study employed GARCH and DCC-GARCH and found that COVID-19 pandemic (infection and death rates) had significant effect on the volatility of sub-sector indices in the Nigeria stock market, and that there was significant volatility transmission among the sub-sector indices of the Nigerian stock market during the COVID-19 pandemic period. The study recommends that policy makers should provide support to companies that were badly hit during the pandemic, and also encouraged portfolio managers to understand the nature of risk attached to stocks selected to be in portfolio of their investors and be aware of best way to mitigate adverse risk effect. https://majaf.com.ng/index.php/majaf/article/view/10COVID-19 pandemiccoronavirusfinancial crisiseconomy infection ratedeath ratesub-sector indices |
| spellingShingle | Oyewale Temilola Christiana Muftau Adeniyi Ijaiya Kasali Kayode Rafiu IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE Malete Journal of Accounting and Finance COVID-19 pandemic coronavirus financial crisis economy infection rate death rate sub-sector indices |
| title | IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE |
| title_full | IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE |
| title_fullStr | IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE |
| title_full_unstemmed | IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE |
| title_short | IMPACT OF COVID-19 PANDEMIC ON STOCK PRICE VOLATILITY OF SUB-SECTOR INDICES IN THE NIGERIAN STOCK EXCHANGE |
| title_sort | impact of covid 19 pandemic on stock price volatility of sub sector indices in the nigerian stock exchange |
| topic | COVID-19 pandemic coronavirus financial crisis economy infection rate death rate sub-sector indices |
| url | https://majaf.com.ng/index.php/majaf/article/view/10 |
| work_keys_str_mv | AT oyewaletemilolachristiana impactofcovid19pandemiconstockpricevolatilityofsubsectorindicesinthenigerianstockexchange AT muftauadeniyiijaiya impactofcovid19pandemiconstockpricevolatilityofsubsectorindicesinthenigerianstockexchange AT kasalikayoderafiu impactofcovid19pandemiconstockpricevolatilityofsubsectorindicesinthenigerianstockexchange |