ABSTRACT
The purpose of the study is to determine the effect of stock market capitalization and financial openness in Nigerian economy. The descriptive research design was adopted in this study. Data were collected from secondary sources within the year 2000 – 2013, the sampling technique used was probability sampling techniques and, the correlation and regression method of analysis were used to test the relevant hypothesis. The findings revealed that Market Capitalization has significant relationship with Gross Domestic Product; also that financial openness has significant relationship with total asset, market capitalization and All Share Index. It was concluded that, the relationship signifies a vibrant economy open for huge investment in the stock market and investors are offered a greater opportunity for diversification. Also the market has the capacity to create wealth and provide long term capital needed for development. It was therefore recommended that, since Nigeria Stock exchange is highly volatile and since prospective investor relies on information that is concise, comprehensive, timely and not misleading. Continuation of intensive regulation should ensure timely release of information so as to lessen the capitalization effects of the market.
TABLE OF CONTENTSTitle Page iCertification iiDeclaration iiiDedication ivAcknowledgements vAbstract viTable of Contents vii
CHAPTER ONE: INTRODUCTION
- Overview of the Study 1
- Statement of the Problem 6
- Objectives of the Study 7
- Research Questions. 8
- Research Hypothesis 8
- Scope of the Study 9
- Significant of the Study. 10
- Limitation of the Study 10
- Definition of Major Terms 12
- Organization of the Study 13
- Summary 14
- References 14
CHAPTER TWO: REVIEW OF LITERATURE2.0 Introduction 152.1 Conceptual Frameworks 172.1.1 Definition of Financial Openness. 172.1.2 History of Financial Liberalization: Emphasis on the Nigerian 19Stock Exchange2.1.3 Process of Financial Liberalization. 202.1.4 Reasons/Motivation for Financial Openness and Stock Market Capitalization 222.1.5 Valuation of Stock Capitalization 252.1.6 Advantages of Stock Market Capitalization 272.1.7 Disadvantages of Stock Market Capitalization 282.2 Theoretical Framework of Capital Market 302.3 Empirical Framework of Stock Market Capitalization and Finance Openness in Nigeria Economy 332.4 Summary 452.5 References 46CHAPTER THREE3.0 Research Methodology 483.1 Introduction to Research Methodology 483.2 Research Design 493.3 Population and Sample Size 493.4 Sampling Techniques 503.5 Method of Data Collection 513.6.1 Model Specified 513.7 Summary 523.8 References 53CHAPTER FOUR4.0 Data Presentation, Analysis and Test of Hypothesis 544.1 Introduction 544.2 Data Presentation 544.3 Data Analysis 584.4 Test of Hypothesis 634.5 Reference 67CHAPTER FIVE5.0 Discussion of Findings, Conclusion and Recommendations 695.1 Discussion of Findings 695.2 Conclusions 705.3 Recommendations 705.4 Area of Further Study 71Bibliography 72
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