THE ACCOUNTING IMPLICATIONS OF FISCAL AND MONETARY POLICIES ON THE DEVELOPMENT OF THE NIGERIAN STOCK MARKET: 1992-2011

Abstract

This research work is geared towards the investigation of the accounting implications of fiscal and monetary policies on the development of the Nigerian stock market. Government through various agencies issues fiscal and monetary policies which are assumed to be effective. However, it is the aim of this research to determine whether these policies have any significant impact on the Nigerian stock market. Descriptive analytical design compiled with the test of hypotheses was the method adopted by the researchers. Data were collected mainly from secondary records  and using multiple regression analysis to analyze the data collected. However, from the analysis of data it was discovered that only a mixture of monetary and fiscal policy exerted a significant impact on the development of Nigerian stock market, monetary policy analyzed was found to have no significant impact on the development of the Nigerian stock market, while fiscal policy has a significant impact on the development of the Nigerian stock market.  considering the period of 1992-2011.  Since fiscal and monetary policy mix have significant impact on the development of the Nigerian stock market, government should endeavor to implement policies aimed at attracting  more funds accessible to investors and market operators, so that the market expected role of funds channeling can be realized.

Keywords: Efficient Market Hypothesis, Fiscal Policy, Minimum rediscounting rate, Monetary Policy,                       Stock Market