PROMOTING ACCESS TO AFRICAN RESEARCH

Journal of Research in National Development

Log in or Register to get access to full text downloads.

Remember me or Register



DOWNLOAD FULL TEXT Open Access  DOWNLOAD FULL TEXT Subscription or Fee Access

Impact Of Monetary Policy On Financial Asset Returns: An Analysis Of Selected Stocks From The Nigerian Capital Market

OT Ebiringa

Abstract




This paper presents an analysis of the impact of monetary policy on financial asset returns, with particular reference to stocks. The minimum discount rate and an index based on the direction of change in discount rate were used as monetary policy proxies. The analysis was done using a multi-association model of which business environment proxies (Dividend per share, term spread, and default spread) were introduced as additional independent variables to the monetary policy proxies. Our finding among others was that restrictive monetary policy decreases portfolio returns while expansive ones increases stock return. Above all monetary policy posture has significant explanatory power in predicting financial asset returns beyond the business environmental conditions

Journal of Research in National Development Vol. 4 (1) 2006: pp. 83-91



http://dx.doi.org/10.4314/jorind.v4i1.42320
AJOL African Journals Online