Unstable Macroeconomic Indicators Impact Nigerian Banking Sector Stock Prices.
The study looked at how unstable economic factors affect the stock prices of banks in Nigeria. They used data from 2009 to 2018 and found that high interest rates and low foreign reserves can lower bank stock prices in the long term. On the other hand, inflation rates can actually increase bank stock prices. Surprisingly, exchange rates didn't seem to have a big impact on bank stock prices. The researchers suggest that lowering interest rates could help make borrowing cheaper and boost the stock market's liquidity.