ABSTRACT
This study was motivated by the growing concern on the impact of Institutional Quality on
economic outcomes. The study focused specifically on the Nigerian Stock Market due to its critical
role in the economy as a vehicle for efficient resource allocation. The Autoregressive Distributed
Lag (ARDL) bounds testing procedure is employed using data from 1985 to 2012. The study used
the ARDL model to ascertain the long-run impact of institutional quality on stock market
development in Nigeria. The results from Empirical analysis of level of corruption, democratic
accountability and bureaucratic quality exert significant impacts on stock market development as
measured by market capitalisation ratio. Also, Banking sector development and stock market
liquidity contribute significantly to stock market development. Moreover, a unidirectional causality
runs from institutional quality to stock market development. The study therefore, recommends that
the fight against corruption should be intensified while the market administrative and regulatory
qualities should be enhanced for a sustainable stock market development in Nigeria.
Keywords: Institutional Quality, Stock market, development, Market capitalisation ratio,
corruption, democratic accountability, bureaucratic quality.
, M & TIMOTHY, E (2021). Institutional Quality And Stock Market Development In Nigeria - An Application Of The Ardl Approach. Afribary. Retrieved from https://afribary.com/works/institutional-quality-and-stock-market-development-in-nigeria-an-application-of-the-ardl-approach
, MATTHEW and ENYINNAYA TIMOTHY "Institutional Quality And Stock Market Development In Nigeria - An Application Of The Ardl Approach" Afribary. Afribary, 05 May. 2021, https://afribary.com/works/institutional-quality-and-stock-market-development-in-nigeria-an-application-of-the-ardl-approach. Accessed 26 Dec. 2024.
, MATTHEW, ENYINNAYA TIMOTHY . "Institutional Quality And Stock Market Development In Nigeria - An Application Of The Ardl Approach". Afribary, Afribary, 05 May. 2021. Web. 26 Dec. 2024. < https://afribary.com/works/institutional-quality-and-stock-market-development-in-nigeria-an-application-of-the-ardl-approach >.
, MATTHEW and TIMOTHY, ENYINNAYA . "Institutional Quality And Stock Market Development In Nigeria - An Application Of The Ardl Approach" Afribary (2021). Accessed December 26, 2024. https://afribary.com/works/institutional-quality-and-stock-market-development-in-nigeria-an-application-of-the-ardl-approach