Open Access Journal Article

Do Globalisation and Geopolitical Risks Matter for Stock Market Performance in Nigeria?

by Elias Udeaja a ,  Peter Offum a,* ,  Kera Ifejimalu a  and  Samson Okafor a
a
Research Department, Central Bank, Abuja, Nigeria
*
Author to whom correspondence should be addressed.
FEL  2024 3(3):34; https://doi.org/10.58567/fel03030004
Received: 18 April 2024 / Accepted: 25 June 2024 / Published Online: 18 December 2024
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Abstract

The integration of countries into the global economy comes with exposure to risks that can be assessed through empirical investigation to uncover their impact on the domestic economy. Thus, this study attempts to answer the question of whether globalisation and geopolitical risk matter for stock market performance in Nigeria, given the growing interaction with the rest of the world. In doing so, the paper employs the dynamic ordinary least squares (DOLS) technique to analyse annual time series data on relevant variables from 1985 to 2021. The main finding indicates that globalisation and geopolitical risks significantly dampen the performance of the Nigerian stock market, whether it is measured by market capitalisation or by an all-share index. Accordingly, the study recommends the implementation of policies aimed at mitigating the risks associated with the globalisation and geopolitics to enhance the performance of the financial market.

Keywords: Globalisation; Geopolitical risks; stock markets; Dynamic Ordinary Least Squares;
Copyright: © 2024 by Udeaja, Offum, Ifejimalu and Okafor. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Udeaja, E.; Offum, P.; Ifejimalu, K.; Okafor, S. Do Globalisation and Geopolitical Risks Matter for Stock Market Performance in Nigeria?. Financial Economics Letters, 2024, 3, 34. https://doi.org/10.58567/fel03030004
AMA Style
Udeaja E, Offum P, Ifejimalu K, Okafor S. Do Globalisation and Geopolitical Risks Matter for Stock Market Performance in Nigeria?. Financial Economics Letters; 2024, 3(3):34. https://doi.org/10.58567/fel03030004
Chicago/Turabian Style
Udeaja, Elias; Offum, Peter; Ifejimalu, Kera; Okafor, Samson 2024. "Do Globalisation and Geopolitical Risks Matter for Stock Market Performance in Nigeria?" Financial Economics Letters 3, no.3:34. https://doi.org/10.58567/fel03030004
APA style
Udeaja, E., Offum, P., Ifejimalu, K., & Okafor, S. (2024). Do Globalisation and Geopolitical Risks Matter for Stock Market Performance in Nigeria?. Financial Economics Letters, 3(3), 34. https://doi.org/10.58567/fel03030004

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