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The Effect of the Change in Oil Prices on Stock Market Capitalization in Nigeria

The Effect of the Change in Oil Prices on Stock Market Capitalization in Nigeria

ABSTRACT

This study evaluates Oil Price Changes on Stock Market Capitalization in Nigeria. The specific objectives of the study are to i. examine the effect of the stock price on stock market capitalization in Nigeria. ii evaluate the effect of inventors’ behaviors on stock market capitalization in Nigeria. Ex post facto research designs were adopted in obtaining, analyzing, and interpreting the data. The study using the Ordinary Least Squares technique analyzed the data. The study review that stock price changes have a significant effect on the value of stock market capitalization in Nigeria. The result also reviews that inventors’ behaviors have a significant effect on stock market capitalization in Nigeria. it affects the domestic market; the price of other stocks is changing day by day. We conclude that changes in oil prices have a significant impact on the stock market. We recommended that government should carefully consider oil-saving measures. Policies to improve energy efficiency, promote energy conservation, and use alternative fuels are among these measures (i.e. coal, natural gas, and renewable energy). And Oil industry investors must diversify their holdings to account for the negative effects of oil price changes on the stock market.

Keywords: Price Changes, Oil Price, Oil Industry, Capitalization

Authorship
Obinuba, Chinwe B. PhD; 2Mbah, Chris C. PhD; and 3Chiana, Cyril A. | Full PDF

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