Examining the Effects of Oil Price Long Memory and Exchange Rate Long Memory on Stock Market Behavior in Nigeria

Authors

  • Adedoyin Isola Lawal landmark university, omu aran, nigeria
  • Samuel Olatunde Dahunsi
  • Abiola Ayopo Babajide
  • Abiola John Asaleye
  • Joseph Ojo Iseolorunkanmi
  • Henry Inegbedion
  • Charles O. Manasseh
  • Bukola, B. Lawal-Adedoyin

Abstract

The study examined the effect oil price long memory and exchange rate long memory on Nigeria's stock. We have used ARMA estimating techniques to assess whether one or both variables exert impact on the stock market in Nigeria. Our result shows that long memory stock price is driven by a long memory of the exchange rate and long stock of the oil price. We therefore recommend that policymakers pursue policies aimed at stabilizing, on the one hand, the exchange rate regime and ensuring the economy has a position in net oil exportations. We also recommend the development of portfolio strategies by market practitioners so that long-term memory in exchange rates as well as in oil pricing are considered when making investment decisions.Keywords: Exchange rate, oil prices, Share prices, long memory, ARMAJEL Classifications: G15, Q43, C58, O40DOI: https://doi.org/10.32479/ijeep.9643

Downloads

Download data is not yet available.

Author Biography

Adedoyin Isola Lawal, landmark university, omu aran, nigeria

Accounting and Finance, Lecturer 1

Downloads

Published

2020-05-16

How to Cite

Lawal, A. I., Dahunsi, S. O., Babajide, A. A., Asaleye, A. J., Iseolorunkanmi, J. O., Inegbedion, H., … Lawal-Adedoyin, B. B. (2020). Examining the Effects of Oil Price Long Memory and Exchange Rate Long Memory on Stock Market Behavior in Nigeria. International Journal of Energy Economics and Policy, 10(4), 430–436. Retrieved from https://econjournals.com.tr/index.php/ijeep/article/view/9643

Issue

Vol. 10 No. 4 (2020)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.