impact of nigerian capital market capitalisation on the...
TRANSCRIPT
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
1
www.globalbizresearch.org
Impact of Nigerian Capital Market Capitalisation on the Growth of
the Nigerian Economy
Zainab Dabo,
Faculty of Social and Management Sciences,
Department of Business Admistration,
Kaduna State University, Nigeria.
E-mail: [email protected]
___________________________________________________________________________
Abstract
The study examines the impact of capitalization of the Nigerian capital market and it’s on the
growth of the Nigerian economy. The paper employs annual time series data from 2001 to
2012(12 year period) collected from various issues of Central Bank of Nigeria’s Statistical
Bulletin and Annual Report and statements of Accounts of Nigeria Stock Exchange. A
regression analysis was adopted in computing the interaction between the capitalization of
the Nigerian capital market and Nigeria’s economic growth. The empirical results showed
that, there was unidirectional causality between capitalization of the stock market and
economic growth, which ran from economic growth (GDP) to capitalization of the stock
market (MCAP) at 5 percent significant level. The paper concludes that the Nigerian capital
market needs to create more confidence to investors, especially in terms of transparency and
accountability, for sustainable and increasing capitalization necessary for sustainable
economic growth in the country. Furthermore, the paper recommends expansion of the
Nigerian Stock Market by the government creating an enabling investable environment, that
will increase both the volume of transactions and number of stocks traded in the market. This
will improve their ability to mobilize resources and efficiently allocate them to the most
productive sectors of the economy.
___________________________________________________________________________
Keywords: Capitalisation, Economy, Growth, Stock Market, Sustainable.
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
2
www.globalbizresearch.org
1. Introduction
Financial system has long been recognized to play an important role globally in bringing
about bringing about economic development of different countries. This recognition dates
back to the period of the 1950s. For instance, researchers such as Goldsmith (1955), Cameron
(1967), Mckinnon (1973) and Shaw (1973), have demonstrated that financial system could be
a catalyst of economic growth and sustainable development if it is well harnessed and
developed. On the other hand Fergusson (2006) views financial markets as the single sector
most important market in which many economic institutions exist. This is because of the
financial link and contract in the sector which has the channels of short and long term sources
of fund which gives rise to a better consolidated financial market.
Reforms (including banking sector consolidation) are predicated upon the need for
reorientation and repositioning of an existing status quo in order to attain an effective and
efficient level of operation. There could be fundamental bottlenecks that may inhibit the
functioning of institutions for growth and the achievement of core objectives in the drive
towards enhancing and sustaining the economic and social imperatives of human endeavour
(Ajayi, 2005).
Soludo (2004) considers the main objective of banking sector reforms, for instance, as
guaranteeing an efficient and sound financial system. The reforms are designed to enable the
banking system develop the required flexibility that is needed to support the economic
development of the nation by efficiently performing its functions as the pivot of financial
intermediation. Lemo (2005) opines that banking sector reforms were to ensure a diversified,
strong and reliable banking industry where there is safety of depositors’ money and position
banks to play active developmental roles in the Nigerian economy.
Soludo,(2004) poised on the Nigeria’s banks reformation programme to be the
transformation exercise of which among others the minimum requirement for capital base of
banks to be N25 billion with a deadline mark to be end of December, 2005. In line with this,
consolidation of banking institutions, especially through mergers and acquisitions was
required, which apparently used the Nigerian Capital market as the platform for the
recapitalization activities of the banks which ultimately increase the capitalization level of the
Nigerian Stock Exchange itself.
This development necessitated banks to consider ways through which they could achieve
the stated objective of increasing their capital base to the authority’s requirement. In their
effort they embarked on different strategies which included the increase in capital base by
initial public offer (IPO), sale of their assets, Mergers and Acquisitions and reducing their
stake in other investments. This is done by adopting two or more of the above stated
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
3
www.globalbizresearch.org
strategies. This reformation programme on banks with a link to the impact of the Nigeria
capital market sustained capitalization on the Nigeria’s economic growth is the main issue of
discussion in this paper.
Many researchers have focused on financial sector reforms and economic growth,
towards improving the body of knowledge but this paper is focusing on the capitalisation of
Nigerian capital market and the overall economic growth. It is at this back drop that research
seeks to evaluate the impact of the Nigerian capital market capitalisation strategy on the
growth the economy. The paper tests the impact of capitalisation of the capital market on the
Nigerian economy via the Nigerian Stock Market as motivated by the consolidation exercises
that were conducted in the banking, insurance and some other businesses in the recent past in
Nigeria. The study covers a period of 10 years (2000-2010). This period is the period when
the entire financial system (banking, insurance, etc) witnesses transformation in the form of
financial and institutional restructuring, policy, and regulatory and legal frameworks.
The paper is divided into five sections with the introduction above as section one. The second
section of the paper reviews literature on consolidation of banks and financial intermediaries
across the world. The third section is on the methodology. Section four presents and discusses
the results obtained, while section five concludes the paper.
2. Literature Review
In developing countries, particularly in Sub-Saharan Africa, financial markets are
dominated by commercial banks, which have not been reliable sources of long-term financing
and also non-bank sources of medium and long-term financing are generally underdeveloped.
The short-term nature of commercial banks’ assets and liabilities as well as regulatory reserve
requirements in many countries render the (banks) incapable of supplying long-term capital
(Edward, 2004). Therefore, the need becomes necessary to inject funds through different
forms of capital formation. This type of financial sector reforms is adhered by many countries
when faced with banking liquidity and other related problems.
The Nigerian financial sector reform encompasses all facets of the Nigerian economic
system that deals with the funding of the economy. The broad objectives of the financial
sector reforms are to promote financial savings, reliable payment system, increase the level of
domestic investment by providing effective intermediation between lenders and borrowers
and diversifying risk. In order to achieve these objectives, measures that were adopted include
the reform of the financial structure, monetary policy reform, foreign exchange market
reforms, liberalization of capital movement, and capital market reforms. The capital market
institutions in particular are in the position to encourage investment, as investors are able to
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
4
www.globalbizresearch.org
borrow funds and invest more than they would have done without such institutions Babalola
and Adegbite,(2000).
The reform in the Nigerian Financial sector facilitated to develop a reliable sector that
will revolve around to emerge an enabling environment which will allow competition to
flourish. Ajayi (2005) considers the banking sector reforms to be spurred by the requirement
to deepen the financial sector and reposition it for growth, at the same time integrating it into
the global financial architecture. This will evolve a banking sector that is consistent with
regional integration basics which fits into best international practices of banking system.
Deccan (2004) views reforms in the banking industry to be aimed at addressing issues such as
governance, risk management and operational inefficiencies, with the vortex of the reforms to
be around in forming up capitalisation. This had gone in line of reformation programme
which the banking system in Nigeria witness in the last decade. Capitalization is an important
component of reforms in the Nigeria financial sector, owing to the fact that effect is both on
banks and the Nigerian Stock Market. This necessitated banks a strong capital base that will
have the ability to absolve losses arising from non performing liabilities which will save
guard against banks becoming distress. Attaining the capitalization requirements may be
achieved through consolidation of existing banks or raising additional funds through the
capital market (Adegbaju and Olokoyo 2008). In views of Pat and James,(2010) they
identified capital market to be an institute that contributes to the socio-economic growth and
development of emerging economies, this is in line with Nigeria’s urge to build a capital
market that will participate in accelerating the growth of the economy. Alile,(1997) posits on
the development of capital market to be made possible through some of the vital roles played
such as channelling resources, promoting reforms to modernize the financial sectors, financial
intermediation capacity to link deficit to the surplus sector and a veritable tool in mobilization
and allocation savings among competitive uses which are critical to the growth and efficiency
of the economy.
Soludo (2004) posits on banking sector reforms as an action which was done as due to
low capitalization of the banks that made them less able to finance the economy, and more
prone to unethical and unprofessional practices. These practices include, poor loan quality, of
up to 21% of shareholders’ funds which when compared with the 1%–2% in Europe and
America (as at that time), and this had made Nigerian banks prone to have liquidity problems.
In addition also to the practices are overtrading in banking business by abandoning the true
function of banking to focus on quick profit ventures such as trading in foreign exchange
dealings and tilting their funding support in favour of import-export trade instead of
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
5
www.globalbizresearch.org
manufacturing, heavily relaying on unstable public sector funds for their deposit base among
others.
In a study developed by Nyong,(1997) in adopting the use of aggregate index of Stock
market measurement variables to determine the of the market in relation to economic growth
in the long-run in Nigeria. The study employed a time series data from 1970 to 1994. Four
measures of capital market development-ratio of market capitalization to GDP (in %), ratio of
total value of transactions on the main stock exchange to GDP (in %), the value of equities
transactions relative to GDP and listing were used. The four measures were combined into
one overall composite index of capital market development using principal component
analysis. It was found that the capital market development is negatively and significantly
correlated with the long-run growth in Nigeria. Also a study conducted by Ewan et al. (2009)
appraised the impact of the capital market efficiency on the economic growth of Nigeria using
time series data from 1961 to 2004.They found that the capital market in Nigeria has the
potential of growth inducing but it has not contributed meaningfully to the economic growth
of Nigeria because of low market capitalization, low absorptive capitalization, illiquidity,
misappropriation of funds among others.
On the other hand the examination conducted by Levine and Zervos (1996) on whether
there is a strong empirical association between stock market and long run economic growth
development. The study used pooled cross-country time-series regression of forty-one
countries from 1976 to 1993 to evaluate this association. The study goes in line with that of
Demirgüç-Kunt and Levine (1996) by conglomerating measures such as stock market size,
liquidity, and integration with world markets, into index of stock market development. The
finding indicates an existence of a strong correlation between the overall stock market
development and long-run economic growth. This means that the result is consistent with the
theories that imply a positive relationship between stock market development and economic
growth.
Demirguc-kunt and Levine (2003) argument on the recapitalization banks through
mergers and acquisitions as a motive which increases banks’ concentration, Stock market
performance and these goes hand-in- hand with efficiency and improvements in the financial
system. But Boyd and Runkle (1993), and Imala (2005) buttressed this argument. They
stressed further that consolidated banking system enhances profits efficiency, and lower bank
fragility not only efficiency. More importantly, high profits arising from this provides a buffer
against adverse shocks and increases the franchise value of the banks. Turning to the
effectiveness of recapitalization and its overall economic implications, Schumpter (1934),
Bayraktar and Wang (2006), King and Levine (1993) have examined relationship between
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
6
www.globalbizresearch.org
banking sector and economic growth or financial sector development and economic growth,
in which these views had contention among the economist.
For Schumpter (1934) views the banking sector to be a stimulant in economic growth as
the banks have the way they play the role between of those who wish to form new
combinations and the possessors of productive means. While Bayraktar and Wang (2006)
posits on banking sector and economic growth to have direct and in direct effect on the
economy through the combination of improving access to financial services and the efficiency
of the financial intermediaries. He based these as both views have a lowering a cost of finance
in which is a stimulant on capital and economic growth.
Raghbendra,(2003) assessed the theory which maintains that financial development as
determinant of economic growth. According to the proposition of the school of thoughts he
followed, making an argument that financial development is a precondition for economic
growth while another argument was on the financial system that is so sophisticated which
helps to strengthen the atmosphere for rapid economic growth provided that there are no other
hindrance to economic development. The theoretical expositions done so far indicate that the
role of financial sector reform or development in stimulating economic growth is
controversial. Because, the role of finance in economic growth is an empirical one and also
the reform of the financial sector as an attempt to achieve financial development may attract
cost. Literalised views focus on financial sector reforms and economic growth, but towards
improving the body of knowledge this paper is focusing on capital market ecapitalisation and
economic growth in Nigeria. This was motivated by the need to provide a study on the link
between the recapitalization of banks in Nigeria, which led to activities in the capital market
and therefore leading to activity in the economy. Since the two players of financial sector are
involved.
Aurangzeb (2012) investigates the contributions of banking sector in the economy of
Pakistan by using ordinary least square and granger causality test. The use of the test confirms
the bidirectional causal relationship of deposits, advances and profitability with economic
growth. In the views of Bakare,(2000) he defines capitalization rate as the discount rate used
to determine the present value of future earnings. It is one of the major determinants of the
market size of any stock exchange. The size of the market capitalization and its growth rate
pose a major influence on the growth and development of the economy. Moreover
consolidation recreated the Nigerian capital market by stimulating activities in both primary
and secondary through increase in aggregate market capitalisation and new issues of bank
stocks.
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
7
www.globalbizresearch.org
Bitzenis and Misic(2008) investigated and made some evaluation on the banking reforms
in Serbia by using surveyed data results. The study uses the approach of pre and post -
performance through many factors which are relevant to reformation of banking systems. The
study concludes the different problems and challenges faced by the system but reforms in the
industry are positive with growth of the economy. Contrary to this, Malik(2010) posits that
banking industry of Pakistan has challenges which hinders it’s growth. Malik’s conclusion
was based on an increase on cost of borrowings, high risk of investment local currency
depreciation(Rupees) and low return on investment all as a result of financial crisis that affect
the global economy. A similar study conducted by Nzue(2006) who investigated the
relationship between the development of Ivorian Stock Market and the country’s economic
performance. He employed the stock market control variables which the results reveal that
there is a long-run relationship between the Gross domestic product and stock market with a
uni-directional causality running from the market development and economic growth.
While a model which was also specified by Balogun, (2007) was more expansive and
included money supply, minimum rediscount rates, private sector credit, ratio of banking
sector credit to government, ratio of stock market capitalization to credit to the private sector,
and exchange rates.
Adegbaju, and Olokoyo, (2008) poised on the issue of capitalization to be a major reform
objective; and defining capitalization literarily to mean increase on the amount of long term
finances used in financing the organization. They reviewed the capitalization process to entail
an increase in the debt stock of the company or issuing additional shares through existing
shareholders or new shareholders or a combination of the two. It could even take the form of
merger and acquisition or foreign direct investment. Whichever form it takes the end result is
that the long term capital stock of the organization is increased substantially to sustain the
current economy trend in the global world. Asedionlen (2004) opines on recapitalization as an
issue which may raise liquidity in short term but will not guaranty a conducive
macroeconomic environment required to ensure high asset quality and good profitability’’
Ezrim and Muoghahi,(2004) examined the effect of financial sector reforms on commercial
banks operations in Nigeria by making a comparison of two decades. All literatures covered
use financial sector which comprises of banks and other financial institutions including
insurance companies. This paper examines the Capital Market capitalisation as a result of
recapitalisation exercise of banks in 2005 and its impact of growth on the economy.
3. Methodology
The population of this study is the Nigerian financial system with its contribution to
Nigerian economy. Although, the financial system comprises of money market and the capital
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
8
www.globalbizresearch.org
market, but the population covers the deposit money banks and the capital market. Therefore
the research is focusing on deposit money banks and the Nigerian Stock Exchange with its
contribution to Nigerian economy after the recapitalisation exercise of banks. The paper
obtained data from several sources; this included the annual statistical Bulletin of the Central
Bank of Nigeria, the Stock market quarterly and annual report of the consolidated banks. It
should be noted that the recapitalisation exercise of banks had affected the banks to the extent
that it has reduced their number from 89 banks to 25 mega banks on the Nigerian capital
market. Along the period covered by the paper, a merger between Stanbic bank and IBTC
took place. This brought the total number of banks under the period of review to be 21 in
number. The data collected for a period of 12 years from 2001 to 2012.
The model specifies on the socio-economic development of the economy by using the proxy
of gross domestic product which significantly influenced by capital market indices (market
capitalisation, new issues, value of transaction and banks total assets). In other words
economic growth proxied by GDP is significantly influenced by the capital and money
market indices which are proxied by the market capitalisation, new issues, value of
transactions and banks total assets. Also the use of Granger test was to show the causal
relationship.
GDP = Gross Domestic Product (Dependent Variable), MCAP = Market capitalization,
(Independent Variable), TNI = Total New Issues (Independent Variable), VLS = Total value
of transactions (Independent Variable), BTA = Bank Total Assets, µ = Disturbance Term, a =
Intercept, a1 – a4 = coefficient of the independent variables.
4. Results and Discussions
The empirical analysis is presented in this section with the presentation of the unit root
tests of the variables used in the analysis. In the first table, the estimates of the ADF are
presented. The result confirmed that all the variable (market capitalization, Total new issues,
Value of transactions, listed equities and government stock) were stationary at levels, except
Bank total asset and gross domestic product that became stationary after first difference since
the series here integrated of order one i.e. I (1). The optimal lag leg length, which is a guide
for model selection are reported in column two and where selected on the basis of Schwardz
criterion, which provides a basis for the test for co-integration relationships among the
stationery series.
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
9
www.globalbizresearch.org
Table: 1
Variable Lag ADF
stationery
Level 1st Diff. Order of
stationery
Remark
GDP 1 -5.9352 -3.0263 -3.0613 1(1) Stationery
MCAP 1 -4.8154 -3.0416 - 1(0) Stationery
TNI 0 -4.6322 -3.0211 - 1(0) Stationery
VLS 0 -5.5213 -2.0403 - 1(0) Stationery
BTA 0 -5.6312 -2.0403 - (1) Stationery
LEGS 0 -3.5312 -3.0213 -3.0341 1(0) Stationery
For the causality test reported in table two, both market capitalization and total new issues
have a unidirectional causal relationship with GDP. It should be noted that the causality runs
from GDP to the two variables at 5 percent level of significant. Although, a weak
unidirectional causality was found between value of transaction and GDP, running from GDP
to value of transaction at 10 percent level of significant. Also bank total asset was found to
granger cause market capitalization which is very strong at 5 percent significant level, while a
bi-directional causality exists between value of transaction and total new issue that is very
strong at 5 percent significant level.
The granger causality result is presented in table two below. It shows that there is
bidirectional causation between GDP and bank total assets BTA and a unidirectional between
the GDP and the market capitalization. All other variables have no significant causation with
the GDP except for listed equities and government stock that has a reverse relationship.
Table 2: Granger Causality test
Null Hypothesis Obs F-statistics probability
MCAP does not Granger Cause GDP
GDP does not Granger Cause MCAP
TNI does not Granger Cause GDP
GDP does not Granger Cause TNI
VLS does not Granger Cause GDP
GDP does not Granger Cause VLS
BTA does not Granger Cause GDP
GDP does not Granger Cause BTA
LEGS does not Granger Cause GDP
GDP does not Granger Cause LEGS
21 2.82021 0.05070
1.74312 0.12301
21 0.00127 0. 05210
0.53280 0. 53401
21 0.21761 0.23910
0.32132 0.05421
21 2.53101 0.03421
3.03250 0.53401
21 2.31291 0.05231
0.24911 0.58761
The regression result reveals that there is strong systematic variation in the dependent
variable as explained by the five independent variables i.e. Market Capitalization ( MCAP),
total New issues ( TNI), Value of transaction (VLT), Bank total asset (BTA) and Listed
Equities and Government Stocks (LEGS) . The F –value is significant at 5% level of
significance showing that there is a linear relationship between GDP and five independent
variables.
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
10
www.globalbizresearch.org
What one could deduced from this discussion is that, the economy responds favorably to
measure taken to increase total listing of equity and government stock in the Nigerian Stock
market. The result is a true reflection of the Nigerian economy and the performance of the
Nigerian stock exchange. During the banking consolidation in 2005, a huge amount capital
were mobilizes into the economy through initial public offering (IPO) by most banks.
Unfortunately, these funds were not properly channeled into the productive sector and most
international protocol in investor divested their funds as soon as return of investment
collapsed due to the financial meltdown.
Again, the negative impact of value of transactions (VLT) could be attributed to the
shallow nature of Nigerian stock exchange. The market is yet to be attractive to big-ticket
local and international institutional investors. That will inject substantial fund into the stock
market. Therefore, the study or findings agree with Ariyo and Adelegun (2005) and Ewah et
al (2009) who found that the capital market in Nigeria has not contributed meaningfully to the
economic growth of Nigeria due to low market capitalization, small market size, few listed
Securities and low volume of transactions, low absorptive capacity, Liquidity etc. Also our
result supports Demirgue- kunt (1996) and Harris (1997) who found no hard evidence and
strong positive relationship between stock market and economic growth.
5. Conclusion
This paper evaluated the impact of the capital market capitalisation strategy on the growth
and development of the Nigerian Economy. The paper tested the significance of
recapitalisation of capital market and the impact on the Nigerian economy. The study covers
the period of 12years (2001-2012). This period was the period when the entire financial
system witness transformation in the form of financial and institutional restructuring, policy,
and regulatory and legal framework. The evidence provided in this study based on the
empirical findings, showed that stock market has positive effect on economic growth in
Nigeria. The Nigerian stock market is no exception to other developing countries which are
working towards reforming and deepening their financial systems through the expansion of its
stock markets in order to improve their ability to mobilize resources and efficiently allocate
them to the most productive sectors of the economy so as to enhance economic growth.
Although, during the period of study the market had faced exogenous and endogenous
problems that some were controlled and others weren’t, then there is the need for strict
compliance with the regulatory and supervisory framework governing the markets. A number
of indicators like the size of the Stock market, volumes of trade, market capitalization, banks’
total assets, and above all the GDP are used to show how the market has grown over the time.
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
11
www.globalbizresearch.org
As indicated by the current trends, the market seems to be saddled with low liquidity and
slow growth in listings. The market is seen as facing a lot of challenge in its development and
growth so it is crucial that the policies related to the market should be given a serious and
accelerated attention. The paper concludes that the Nigerian capital market needs to create
more confidence to investors, especially in terms of transparency and accountability, for
sustainable and increasing capitalization necessary for sustainable economic growth in the
country. Furthermore, the paper recommends expansion of the Nigerian Stock Market by the
government creating an enabling investable environment, that will increase both the volume
of transactions and number of stocks traded in the market. This will improve their ability to
mobilize resources and efficiently allocate them to the most productive sectors of the
economy
References
Adegbaju, A. A. and Olokoyo, F.O. (2008): “Recapitalization and banks performance: A case
study of Nigerian banks”. African Economic and Business Review Vol 6 No1.
Ajayi .M. (2005): Banking Sector Reforms and Bank Consolidation: Conceptual Framework.
CBN Bullion, 29(2):3 – 10.
Alile, H. I. (1984): “The Nigerian Stock Exchange: Historical Perspective, Operations and
Contributions to Economic Development” Central Bank of Nigeria Bullion, Silver Jubilee
edition vol. II pp. 65-69.
Ariyo, A, Adelegan, O. (2005): “Assessing the impact of capital market Reforms in Nigeria
an incremental Approach”. A paper presented at the 46th annual conference of the Economic
Society in Lagos.
Asediolen . (2004) “ for the economic and financial interest of Nigeria”. Nigerworld; 1& 2
Aurangzeb.C.(2012) “ Contributions of banking sector in economic growth in Pakistan” A
Journal of Business. Economic and Finance review Vol.2 (6) pp45-54.
Babalola, J.A and Adegbite, M.A(2000) “ The performancevof Nigerian Capital Market Since
Deregulation in 1986” CBN Economics and Financial Review, Vol,39 No.1
Bakare.A.S(2011) “ the trend and growth implications of banks reccapitalisation in Nigeria.
Balogun E.D (2007) “Banking reforms and the Nigeria economy performance,pitfalls and
future policy options MPRA paper No 3804.
Basel Committee on banking supervision (2004). Internal convergence of capital
measurement and capital standards; a revised frame work. Bank for international
settlements.(basel)
Bitzenis A. and Misic.A(2008) “ Evaluating the banking reforms in Serbia using survey
results”. A Journal of Economics and Finance, Vol 25 No 1 pp 49-71.
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
12
www.globalbizresearch.org
Boyd, J.H. and Runkle, D.E. (1993) “Size and Performance of Banking Firms: Testing the
Predictions of Theory”. Journal of Monetary Economics, 31, pp. 47-67.
Central Bank of Nigeria Statistical Bulletin. 2000-2010.
Deccan, H.(2004) “New Banking reforms to focus on Consolidation” New Delhi DHNS
publication. www.deccanherald.com
Demirgüç-Kunt, A and Levine,R (1996): "Stock Market, Corporate Finance and Economic
Growth: An Overview" The World Bank Review 10(2):223-239.
Ewah S.O.E , Essang A.E, & Bassey J.U (2009). Appraisal of Capital Market efficiency on
economic growth in Nigeria.
Ezirim, C.B. and Muoghalu,M.I.(2004). “ Financial reforms and commercial banks operations
in Nigeria. A comparison of two decades. Union digest, Vol 8 No 2, June P 62-81.
Fergusson, L.(2006) “ institution for financial development, what are they and where do they
come from”? Journal of economics survey, 20(1), 27-71.
Granger. C.J.(1969) “ Investigating Casual relations by Econometric Models and Cross-
Spectral models. Econometrica. 424-438.
Harris, R.D.(1997). “Stock markets and development: A re-assessment of European
Economic”. Review, 1, 136-139.
Imala O.I. (2005). “Challenges of Banking Sector Reforms and Bank Consolidation in
Nigeria”. CBN Bull., 4 (29):2-27.
King,R.G. and Levine.R.(1993a) “ Finance and Growth: Schumpeter Might be Right,
Quarterly Journal of Economics. 108, 717-737.
Lemo T (2005): Regulatory Oversight and Stakeholder Protection. A paper presented at the
BGL Mergers and Acquisitions Interactive seminar held at Eko Hotels and Suites, Victoria
Island, June 24.
Levine, R. and Zervos,S (1996): “Stock Market Development and Long-run Economic
Growth” The World Bank Review 10(2):
Mckinnon, R.I. (1973): Money and Capital in Economic Development, Washington, D.C., the
Brookings Institution, 1973.
Nigerian Stock Exchange fact books 2001-2010.
Nigerian Stock Exchange Annual Accounts 2001-2010.
Nigerian banking report: progress of Nigerian banks in the last 10 years. Cowry asset
management limited.
Nyong MO (1997): Capital Market Development and Long run Economic Growth: Theory,
Evidence and Analysis, First Bank Review, December pp. 13-38.
Proceedings of the Second Middle East Conference on Global Business, Economics, Finance and Banking (ME15Dubai Conference) ISBN: 978-1-941505-26-7
Dubai-UAE, 22-24 May, 2015 Paper ID: D543
13
www.globalbizresearch.org
N’zue, F.(2006) “Stock Market development and Economic growth: Evidence from Cote
D’Ivore” Africa Development review, 18(1)pp123-145.
Obadan M I (1998): Capital market and Nigeria’s economic Development. Presidential
address presented at the 1- day seminar of the Nigerian Economic Society at the Institute of
International Affairs.
Okorie, A.U.(2005) “ Banking Sector reforms and bank consolidation: The Malaysia
Experience. CBN publication Vol 29 No2 pp 12-16.
Raghbendra, J.(2003). Macroeconomics for developing countries. 2nd Edition. Rutledge
Taylor and Francis Group London, New York.
Samuel.M.N. and Emeka.J.O(2009) “ financial deepening and economic development of
Nigeria. An Empirical investigation.
Schumpeter. J. (1934) “the theory of Economic Development. Harvard University press
Cambridge.
Shaw, E. (1973): Financial Deepening in Economic Development, New York: Oxford
University Press.
Soludo CC (2004): “Consolidating the Nigerian Banking Industry to Meet the Development
Challenges of the 21st Century” Address at the Special Meeting of the Bankers Committee,
Abuja.