← TAFFD's Journal · ISSN 2643-4938
Volume 1 · 2019 · Volume 1, Issue 1 (January–March 2019) — Inaugural issue

Revisiting Growth Effects of Government Bonds in Nigerian Capital Market

Temitayo O. Olaniyan & Samuel O. Ekundayo
pp. 34-48 March 2019 Open access · CC BY 4.0
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Abstract

This study revisited the effects of government bonds for the growth of the Nigerian capital market. Utilising time-series data obtained from the Nigeria Stock Exchange (NSE) annual reports for the period 2010 to 2017, this study through the Generalised Met hod of Moments (GMM) regression estimator found that the value and the number of lis ted government bonds' positively and significantly affect capital market growth in Nigeria. The low capitalisation of government bonds was found to negatively affe ct the growth of the market. The null hypothe sis of the Hansen J statistics wa saccepted; im plying that the IVs used in the GMM model is valid. We concluded that government bonds have positive and significant effects on the growth of the Nigerian capital market. T hus, government bonds have made the NSE All-Share Index grow over the period under investigation. The study thus, recommends among other things, that there should be more issuance of government bonds to the public and further to enhance the efficiency of the capital markets, both primary and secondary. The funds raised from the capital market through government issuance should also be channelled towards Nigeria'sproductive sectors to promote an all-inclusive growth in the Nigerian economy.

Government BondsBond MarketAll-Share IndexGeneralised Method of MomentsNigeri a

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Olaniyan, T. O., & Ekundayo, S. O. (2019). Revisiting Growth Effects of Government Bonds in Nigerian Capital Market. Transdisciplinary Agora for Future Discussions Journal, 1(1), 34–48. https://journal.taffds.org/articles/revisiting-growth-effects-of-government-bonds-in-nigerian-capital-market-6-34

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