Effect of Bond Market on the Capital Market Performance in Nigeria
Chidi-Okeke, Chioma Nnenna *
Department of Banking and Finance, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria.
Chukwu Kenechukwu Origin
Department of Banking and Finance, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria.
Chimarume Blessing Ubah
Department of Banking and Finance, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
Capital market provides long term funds to the government and other institutions through varieties of financial instruments including bonds available in the market. This paper examined the effect of bond market on the performance of the capital market from 2000 to 2021. Time series data was collected from Statistical bulletin of Central Bank of Nigeria and was used to analyze the effect of explanatory variables (corporate and government bond market capitalization) on the dependent variable (market capitalization). Vector Autoregressive Estimates (VAR) was used to analyze the date and the result of the analysis indicates that bond market variables have positive by insignificant effect on capital market performance within the period of the study. The study recommended that the government should ensure an investor friendly bond market by putting in place measures aimed at developing a bond market to enhance capital market growth.
Keywords: Genetics, Bond market, polytene chromosomes, capital market performance, Diptera, face fly, Musca autumnalis, trichogen cells, nurse cells