ATTENTION:
BEFORE YOU READ THE
PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!
TO GET THE FULL
PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953,
08168759420
TO GET MORE PROJECT
TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
THE ROLE OF CAPITAL
MARKET IN INDUSTRIAL GROWTH AND DEVELOPMENT IN NIGERIA
ABSTRACT
The increase in number of fraud and fraudulent activities in Nigeria and around the world emphasized the need for forensic accounting. The aim of this paper is to find out if rules and
procedures are properly followed in the public sector transactions, to examine
if there is adequate internal control system in the public sector, to ascertain
the need for forensic accounting services in the public sector for fraud and
corruption issue as well as to verify if the accountant in the public sector
have adequate forensic training for fraud and corruption issue. Questionnaire was distributed to elicit information from
50 respondents. The data collected were analyze using chi-square statistical
tool. The results of my findings are
that fraud and corruption are fundamental problems in the Nigeria public sector
and is hampering efficiency in the sector, and that rules and procedures are
not properly followed, it was also discovered that forensic accounting will
help reduced corruption. I then recommend the introduction of forensic
accounting and training of accountant to
acquire the skill of forensic accounting and utilization of their services in
public sector and also that our legal
framework should be implemented in line with management principle of “carrot
and stick” whereby those who bend rules and procedures are made to face the
full wrath of the law to act as deterrence for others.
TABLE OF CONTENTS
Title Page
Declaration
Certification
Dedication
Acknowledgements
Abstract
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2
Statement of the Problem
1.3
Research Objectives
1.4
Scope of the Study
1.5
Research Hypothesis
1.6
Significance of Study
1.7
Limitations of the Study
1.8
Definition of Terms
References
CHAPTER TWO: LITERATURE REVIEW
2.1
Conceptual Issues
2.2
Overview of the Nigerian Capital Market
2.2.1 Origin of
the Stock Exchange
2.2.2 Origin of the
Nigerian Capital Market
2.2.3
Operations Of The Nigerian Capital Market
2.2.4
Participants in the Nigerian Capital Market
2.3
The Roles of the Nigerian Capital Market
2.4
Review of the Performance of the Nigerian Capital Market
2.5
The Contributions of the Capital Market to Economic Growth In Nigeria
2.6
Problems of Capital Market Development In Nigeria
2.7
Recent Developments towards an Effective Stock Market in Nigeria
2.8
International Comparison of the Nigerian Stock Market
2.9
Prospects of the Nigerian Capital Market
2.10 Approach of
Raising Fund in the Capital Market
References
CHAPTER THREE:
RESEARCH METHODOLOGY
3.1
Introduction
3.2
Research Design
3.3
Method of Data Collection and Sources
3.4 The
Population of the Study
3.5 The
Sample Size
3.6
Method of Data Analysis
3.7 Model
Specification
References
CHAPTER FOUR:
PRESENTATION OF REGRESSION RESULT
4.1
Introduction
4.2
Policy Implication of Empirical Findings
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of
Findings
5.2 Conclusion
5.3 Recommendations
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The capital market has been identified as an institution that
contributes to the socio-economic growth and development of emerging and
developed economies. This is made possible through some of the vital roles
played such as channeling resources, promoting reforms to modernize the
financial sectors, financial intermediation capacity to link deficit to the
surplus sector of the economy, and a veritable tool in the mobilization and
allocation of savings among competitive uses which are critical to the growth
and efficiency of the economy (Alile 1984).
It helps to channel capital or long-term resources to firms with
relatively high and increasing productivity thus enhancing economic expansion
and growth (Alile 1997). Ekundayo (2002) argues that a nation requires a lot of
local and foreign investments to attain sustainable economic growth and
development. The capital market provides a means through which this is made
possible. However, the paucity of long-term capital has posed the greatest
predicament to economic development in most African countries including
Nigeria.
Osaze (2000) sees the capital market as the driver of any
economy to growth and development because it is essential for the long-term
growth capital formation. It is crucial in the mobilization of savings and
channeling of such savings to profitable self-liquidating investment.
The Nigerian capital market provides the necessary lubricant
that keeps turning the wheel of the economy. It not only provides the funds
required for investment but also efficiently allocates these funds to projects
of best returns to fund owners. This allocative function is critical in
determining the overall growth of the economy. The functioning of the capital
market affects liquidity, acquisition of information about firms, risk
diversification, savings mobilization and corporate control (Anyanwu 1998).
Therefore, by altering the quality of these services, the functioning of stock
markets can alter the rate of economic growth (Equakun 2005). Okereke-Onyiuke
(2000) posits that the cheap source of funds from the capital market remain a critical
element in the sustainable development of the economy. She enumerated the
advantages of capital market financing to include no short repayment period as
funds are held for medium and long term period or in perpetuity, funds to state
and local government without pressures and ample time to repay loans.
In 1986 Nigeria embraced the International Monetary Fund
(IMF)-World Bank Structural Adjustment Programme (SAP) which influenced the
economic policies of the Nigerian government and led to reforms in the late
1980s and early 1990s.The programme was proposed as an economic package to
rapidly and effectively transformed the Nigerian economy within two years
(Yesufu 1996). However, until SAP was abandoned in 1994, the objectives were
not achieved due to the inability of government to judiciously implement some
of its policy measures Oyefusi and Mogbolu 2003). The notable reforms include
monetary and fiscal policies, sectoral reforms such as removal of oil subsidy
in 1988 to the tune of 80%,interest deregulation from August 1987, financial
market reform and public sector reforms which entails the full or partial
privatization and commercialization of about 111 public owned enterprises. The
Nigerian Stock Exchange was to play a key role during the offer for sale of the
shares of the affected enterprises (World Bank 1994; Anyanwu 1993; Anyanwu et
al. 1997; Oyefusi and Mogbolu 2003).
The introduction of SAP in Nigeria has resulted in a very
significant growth of the country’s stock market as a result of deregulation of
the financial sector and the privatization exercise which exposed investors and
companies to the significance of the stock market (Alile1996;Soyode 1990).
Ariyo and Adelegan (2005) contend that the liberalization of capital market led
to the growth of the Nigerian capital market yet its impact at the
macro-economy was negligible. Again the capital market was instrumental to the
initial 25 banks that were able to meet the minimum capital requirement of N25billion
during the banking sector consolidation in 2005.The stock market has helped
government and corporate entities to raise long-term capital for financing new
projects, and expanding and modernizing industrial/commercial concerns (Nwankwo
1991).
Given the roles the capital market has played during the
privatization of public owned enterprises, recent recapitalization of the
banking sector and avenue of long term funds to various government and
corporations in Nigeria.
The
major focus of this research is to empirically assess with the contribution of
capital market to economic growth in Nigeria.
1.2
STATEMENT OF THE PROBLEM
The
capital market is one of the main avenues investors invest their hard earned
currency in anticipation of good returns or yield. But since the inception of
the global economic crunch in addition to a number of causing factors the
impact of the capital market has remained rather docile. The federal government
effort at revamping it has still not yielded enough result.
In
the light of this, the following statement of research questions are being
raised.
1.
Does the capital market enhance the growth of the Nigerian economy?
2.
Does the capital market enhance and promote investment in Nigerian economy?
3.
Does the capital market help to increase value of transactions (government and
industrial securities)?
1.3
RESEARCH OBJECTIVES
This
research work seeks to achieve the following objectives.
1.
To ascertain whether the capital market enhance the growth of the Nigerian
economy.
2.
To critically examine whether capital market enhance and promote investment in
Nigerian economy.
3.
To verify whether the capital market help to increase value of transactions
(government and industrial securities).
1.4
SCOPE OF THE STUDY
This
study is undertaken to evaluate the impact of Nigerian Capital Market as an
Instrument in mobilization of investment capital. As such, this study is
restricted to all companies quoted on the floor of the Nigerian Stock Exchange
market. Temporally or in term of time series, a period of twenty seven years is
used i.e. 1981 to 2008 using some market indicators as means of assessing the
impact of the capital market in mobilizing investment in Nigeria. It is hoped
that this will help to achieve the stated objective of the study.
1.5
RESEARCH HYPOTHESIS
The
following hypothesis will be tested
Hypothesis I
Ho: The capital market
does not enhance the growth of the Nigerian economy
H1: The capital market
still enhance the growth of the Nigerian economy
Hypothesis II
Ho: The capital market
does not enhance and promote investment on the Nigerian economy.
H1: The capital market
still enhances and promotes investment on the Nigerian economy.
Hypothesis III
Ho: Capital market
does not help to increase value of transactions (government and industrial
securities) in Nigeria.
H1: Capital market
helps to increase value of transactions (government and industrial securities)
in Nigeria.
1.6
SIGNIFICANCE OF STUDY
This
research work on its conclusion, together with whatever solution or findings
that may arise, will prove useful to some particular group of persons or
otherwise for various reasons in accordance with their varying needs.
Beneficiaries
-
Stakeholders: This study will be important and beneficial to
stakeholders of an organization to know the role of the Nigerian capital market
in mobilizing investment in Nigeria economy.
-
The Government: It will acquaint the government of the importance of
Nigerian Capital Market and how it should be properly managed.
-
The public: This study will help to restore the lost confidence of the
public as regard the Nigerian capital market and investment mobilization in
Nigeria economy.
-
Academic/future researcher: Both academic and other future researchers
in this similar subject matter will find it a useful source of learning and
research.
AFFILIATE LINKS:
Comments
Post a Comment