ABSTRACT

This study examined the effect of exchange rate on stock prices in Nigeria from the period of 2002 to 2016 using secondary data collected from CBN statistical bulletin. To analyze data collected, Ordinary Least Square (OLS) multiple regression technique was used to determine the effects of exchange rate on stock prices in Nigeria using E-views statistical software version 9.0. The study reveals that real exchange rate has a positive insignificant effect on stock prices and the macro -economic variable-interest rate which was also included in the study has a negative significant effect on stock prices. The study therefore concluded that exchange rate has a significant effect on stock prices in Nigeria and recommended that the government should strengthen its macro- economic policies and work toward achieving a single digit interest rate to reduce the effects of fluctuating exchange rate and interest rate on stock market prices in Nigeria.

TABLE OF CONTENTS

Declaration

Certification

Dedication

Acknowledgements

List of tables

Table of contents

Abstract

CHAPTER ONE:

INTRODUCTION

1.1 Background To The Study

1.2 Statement of Problem

1.3 Objectives of The Study

1.4 Research Question

1.5 Research Hypothesis

1.6 Significance of Study

1.7 Scope of Study

1.8 Limitation of Study

CHAPTER TWO:

Literature Review

2.1 Conceptual Frame Work

2.1.1 The Concept of Exchange Rate

2.1.2 Types of Exchange Rate

2.1.3 Exchange Rate Regimes 

2.1.4 Impact of Exchange Rate on an Economy

2.1.5 The Concept of Stock Prices

2.1.6 Important Factors Affecting Stock Prices

2.1.7 The Concept of Interest Rate 

2.1.8 Causes of Differences in Rates of Interest

2.2 Theoretical Frame Work

2.2.1 Purchasing Power Parity Theory

2.2.2 The Keynesian Theory

2.2.3 Portfolio Balance Theory

2.3 Empirical Review

CHAPTER THREE:

3.1 Research Design

3.2 Source of Data

3.3 Population of Study

3.4 Research Area

3.5 Model Specification

3.5.1 Description of Model Variables

3.6 Analytical Techniques

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSON 

4.1 Data Presentation

4.2 Data Analysis

4.3 Test of Hypothesis

4.4 Discussion of Findings

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings

5.2 Conclusion

5.3 Recommendations

References

Appendices