Impact of Electronic Database on the Performance of Nigeria Stock Exchange Market

Abstract

This study examines the impact of electronic database on the performance of Nigerian Stock Exchange Market. Time series data obtained from Central Bank of Nigeria (CBN) between 1970 and 2010 was used to analyze the pre- and pro-periods of Information Technology influx into the Nigeria Stock Exchange Market using econometric models. The results reveal that electronic database has great impact on the Nigerian Stock Exchange Market as revealed in the post e-database results. Furthermore, the results showed the importance of information technology to capital market development. Therefore, there is the need to improve the use and adoption of higher information technology so as have better performance of the market such that the business day transaction should be reduced to one day (T+ 0) instead of the three days (T+ 2) transaction as currently existing in the market. Apart from having better performance, this will invariably raise the level of awareness so that investors will be abreast with the happenings in the market.

Keywords: Stock Market, Information Technology, Database, Securities, Investors, Operators and Development.