Higher market liquidity in Nigerian Stock Exchange boosts firm performance.
The study looked at how the amount of trading in the Nigerian Stock Exchange affects stock returns. They used a model to analyze data from 1985 to 2015 and found that higher trading volume and turnover led to higher stock returns. This means that in Nigeria, more trading activity is linked to better performance for companies listed on the stock market. This is different from what studies in other countries have found, where more trading activity usually leads to lower market returns.