Empirical Appraisal of Nigerian Insurance Sector and the Performance of Nigerian Stock Exchange
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 5
Abstract
The work empirically appraised the Nigerian insurance sector and the performance of Nigerian stock exchange. The inadequacy of capital, inability to mobilize adequate financial resources for trading and investment on the floor of the Nigerian stock exchange, inadequate technical and managerial skill and poor insurance regulatory framework brought confidence crisis and strong apathy to insurance purchase in Nigeria. The specific objectives were to examine the relationship between insurance companies’ investments and the all share index of the Nigerian Stock Exchange and to assess the effect of stock/securities prices of insurance companies on market capitalization of the stock market and also to evaluate the relationship between the number of deals of insurance companies in the market. Using an ex-post facto research design and a historical data, the study covered the period 1981 to 2014 and covered all the quoted insurance firms on the Nigerian Stock Exchange operating in Nigeria. The findings reveal there is a significant relationship between insurance companies’ investments and the all share index of the Nigerian Stock Exchange, also there is no positive effect of stock/securities prices of insurance companies on market capitalization of the stock market and that Insurance sector growth has significant influence on the performance of Nigerian Stock Exchange. It was recommended that stakeholders in the Nigerian insurance industry in collaboration with their regulatory bodies should consider further consolidation in the Nigerian insurance industry in order to create opportunities for further listing of more insurance companies on the floor of the Nigerian Stock Exchange. The stock/securities prices of insurance companies listed on the floor of Nigerian Stock Exchange should be made attractive to investors for increased volume of stock/securities traded and more insurance investments should be channeled to the stock market for more returns on investments.
Authors and Affiliations
BasseyIme Frank
Keywords
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- EP ID EP414960
- DOI 10.9790/5933-0905036577.
- Views 189
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