Nigeria Corruption Perception Index: The future of Nigeria Capital Market using three market indicators

Okoye Nonso John (1), Akunna Rachael Chika (2), Nwosu Ngozi Lorretta (3), Ezeala George (4)
(1) Department of Banking and Finance, Nnamdi Azikiwe University, Awka
(2) Department of Banking and Finance, Nnamdi Azikiwe University, Awka
(3) Department of Technology and Vocational Education, Nnamdi Azikiwe University, Awka
(4) Department of Accountancy, Nnamdi Azikiwe University, Awka.
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This study was primarily to ascertain the impact of Nigeria's Corruption Perception Index on the three sensitive performance indicators in the Nigeria capital market such as market capitalization, stock value traded and turnover ratio. The input of Nigeria's capital market to the growth of the Nigerian economy cannot be taken for granted, and as such, corruption is a strong factor that will limit the contribution of Nigeria's capital market to the growth of Nigeria's economy. This research work was anchored on social disorganisation theory which assumes that one's environment primarily influences behavior. The study was analysed using least squares. The study found that the Corruption Perception Index significantly affected market capitalisation and stock value traded in Nigeria. In contrast, the corruption perception index had no significant effect on the turnover ratio in the Nigeria capital market. The main recommendation to this study is that government agencies such as the EFCC and ICPC should do everything possible to reduce the rate of corruption in Nigeria.