International Journal of Scientific and Research Publications

IJSRP, Volume 8, Issue 2, February 2018 Edition [ISSN 2250-3153]


Theoretical Evidence of the Efficient Market Test in the Nigerian Capital Market
      Dumani Markjackson, Theophilus Kogiesi Omie
Abstract: The capital market is an integral part of the development of a nation. Thus, several studies have been carried out to determine the pricing mechanism and efficient market test of capital markets in both advanced and developing countries (Nigeria inclusive). This paper sets to determine the type of efficiency in the Nigerian Capital Market. The study adopted a desk research approach and reviewed several empirical works on the subject to provide theoretical evidence in the Nigerian Capital Market. The findings revealed that the Nigerian Capital Market is efficient in the weak form due to the ability of investors to decode a whole lot of information concerning the entire operations of the organizations listed in the exchange. It also emerged that the share prices in the NSE are not random and thus not efficient in the weak form. The findings are obviously antagonizing. Reason being that, the studies reviewed lacks clear cut demarcation between information, operation, and allocation efficiency in the capital market as one cannot assume the place of the other. We therefore suggest the creation of a real time channel for speedy dissemination of information concerning corporations in the exchange. For the researchers, we strongly suggest that more probing studies should be carried out to ascertain the operational, allocation and informational efficiency of the Nigerian Stock Exchange.

Reference this Research Paper (copy & paste below code):

Dumani Markjackson, Theophilus Kogiesi Omie (2018); Theoretical Evidence of the Efficient Market Test in the Nigerian Capital Market; Int J Sci Res Publ 8(2) (ISSN: 2250-3153). http://www.ijsrp.org/research-paper-0218.php?rp=P747185
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