Effect of Stock Information on the Efficiency of the Nigeria Capital Market
Abstract
Background
The study empirically investigates the effect of Stock Information on the Efficiency of the Nigeria Capital Market. It examined the major participants (Nigeria Stock Exchange, Stock brokers, Professional accountants and Academics), Random Walk Theory of share price movement and levels of Efficient Market Hypothesis.
Materials and Methods
Survey Questionnaire was employed to collect data. A multi-stage sampling technique was used in a total sample size of eighty-two (82). This study used the descriptive statistics (frequency distribution and percentages) and the null hypothesis (H0) will be employed using the Chi-square (?2) and Analysis of Variance (ANOVA) with a 5% error term.
Results
The study found out that Stock Information has contributed to the Efficiency of the Nigeria Capital Market to a great extent and that the differences in the mean values of the sample is not significant and has risen due to fluctuations in simple sampling. Analysis of Variance (ANOVA) of the data collected revealed that the level of efficiency of the Nigeria Capital Market is weak.
Conclusion
The Nigeria Capital Market should educate and enlighten the investors on the workings and technicalities of the market, introduce new products that will enhance liquidity, make sure that its rules are adequate, relevant and up-to-date and review all internal structures to improve efficiency and service delivery.
The study empirically investigates the effect of Stock Information on the Efficiency of the Nigeria Capital Market. It examined the major participants (Nigeria Stock Exchange, Stock brokers, Professional accountants and Academics), Random Walk Theory of share price movement and levels of Efficient Market Hypothesis.
Materials and Methods
Survey Questionnaire was employed to collect data. A multi-stage sampling technique was used in a total sample size of eighty-two (82). This study used the descriptive statistics (frequency distribution and percentages) and the null hypothesis (H0) will be employed using the Chi-square (?2) and Analysis of Variance (ANOVA) with a 5% error term.
Results
The study found out that Stock Information has contributed to the Efficiency of the Nigeria Capital Market to a great extent and that the differences in the mean values of the sample is not significant and has risen due to fluctuations in simple sampling. Analysis of Variance (ANOVA) of the data collected revealed that the level of efficiency of the Nigeria Capital Market is weak.
Conclusion
The Nigeria Capital Market should educate and enlighten the investors on the workings and technicalities of the market, introduce new products that will enhance liquidity, make sure that its rules are adequate, relevant and up-to-date and review all internal structures to improve efficiency and service delivery.
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