PORTFOLIO INVESTMENT INFLOWS, ECONOMIC RECESSION AND STOCK MARKET RETURNS REACTION
Kabiru Umar
Volume 8 Issue 1
Abstract
The study examined the stock market returns reaction to portfolio investment in Nigeria, using monthly data drawn from to January 2015 to December 2021. The Autoregressive Distributed Lag (ARDL) model was applied for statistical analysis. The study found that stock market returns reacted positively to both domestic and foreign portfolio investment inflows in Nigeria. Additionally, it was established that economic recession also negative affected stock market returns. Therefore, it could be concluded that domestic and foreign portfolio investment inflows is expected to result in both short and long run effect on stock market returns in Nigeria. Thus, it is recommended that supervisory bodies should evolve measures that will facilitate increase in mobilisation of domestic investment to mitigate uncertainty that was experienced during periods of economic crises either local or international. Keywords: Domestic, Economic Recession, Foreign, Portfolio Investment, Stock Return
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