Abolaji D Anifowose | Lagos State University, Lagos, Nigeria (original) (raw)

Papers by Abolaji D Anifowose

Journal of Policy and Development Studies, 2020

FUOYE Journal of Finance and Contemporary Issues: Volume 4, Issue 1: 2023, 2023

This paper investigates the effect of foreign direct investment on the Nigerian economy with part... more This paper investigates the effect of foreign direct investment on the Nigerian economy with particular emphasis on export growth rate, trade openness, external debt growth rate, foreign portfolio investment, exchange rate and inflation from 1985-2020. Data for the study were obtained from the World Bank Digest of Statistics and Central Bank of Nigeria Statistical Bulletin. The study employed regression analysis of the ordinary least square approach in analyzing the data for the study. Major findings from the investigation demonstrate that the export growth rate, trade openness, external debt growth rate, foreign portfolio investment and inflation rate have no significant effect on the Nigerian economy, while exchange rate has a significant effect on the Nigerian economy. The paper therefore suggests that government should embrace export-led growth strategies on long-term development plans. There is also the need for Nigerian government to make favourable trade policies and investment conditions friendlier to boost the inflow of foreign portfolio investment in Nigeria.

International Journal of Economics and Empirical Research, 2016

Psychological factors influence and distort financial decision-making and asset valuation in the ... more Psychological factors influence and distort financial decision-making and asset valuation in the real world. However, conventional asset pricing model ignores such factors albeit incorporation of psychological factors can enhance the effectiveness of asset pricing. The disposition effect, which is one of the distortions present in the financial market yield significant implications. Disposition effect is a phenomenon where investors hold losing investment â€˜too longâ€™ and sell winning investment â€˜too soonâ€™. Purpose: This paper examines the disposition effect in the Karachi Stock Exchange (KSE) and investigates its role in asset pricing in the same market. Methodology: Regression approach is usedfor empirical purpose. Findings: The findings provide an evidence of a disposition effect in KSE and a quite interestingly show that the disposition effect reduces expected returns.Recommendations: Policy recommendations have been provided.

SSRN Electronic Journal, 2005

Borsa Istanbul Review, 2021

This paper examine the causation between Exchange Rate, Interest Rate and Economic Growth in Nige... more This paper examine the causation between Exchange Rate, Interest Rate and Economic Growth in Nigeria for a period of 57 years, ranges from 1960 to 2017 with the application of time series econometric techniques. The empirical results show that there is a strong and positive relationship between Real Exchange Rate (RER), Real Interest Rate (RIR) and Real Gross Domestic Product (RGDP). Also, there is an evidence of long-run equilibrium bi-directional relationship between RER and RGDP. However, there is no causality between RIR and RGDP as evidenced by Pairwise Granger Causality Tests results.

The objective of this paper is to examine the pension administration in Nigeria and the role of “... more The objective of this paper is to examine the pension administration in Nigeria and the role of “CABALS” in the corridor of pension administrative supra-system. To suggest means by which reformation of pension administration could be enhanced to curb future menace of pensioners, who are at the receiving end of this monstrous tendency of the maraudous cabals. The objective of pension fund agenda is to enable the pensioners avail a sustainable living after decades of service. When this fund is messed up by the “insider-trading, the objective, therefore, is defeated. To achieve a dependable result, opinions were invited through dissemination of questionnaires to respondents to harness the public opinions regarding this monstrous development in a debacled economy. The analysis of public opinion shows that the pensioners who are at the adverse end have completely lost confidence in the government and its agents managing the pension funds. One of the respondents and also a pensioner calle...

Global Business Review, 2018

This article presents empirical test results of Malaysian foreign exchange market microstructure ... more This article presents empirical test results of Malaysian foreign exchange market microstructure assessment of exchange rate dynamics. We apply vector autoregressive (VAR) model to estimate the influential role of currency order flow in the determination of the currency exchange rate for the Malaysian ringgit (MYR) against the US dollar (USD). We investigate whether currency order flow captures the movements of exchange rate of MYR against USD, and how the long-term and short-term components impact the relative estimation of MYR in the international market. We, construct a measure of order flow in the Malaysian foreign exchange market to reflect the pressure of currency excess demand. Our focus is on the cumulative currency order flow and the exchange rate relationship of MYR and USD. A hybrid model of order flow and exchange rate dynamics proposed by Evans and Lyons (2002a) is applied to the Malaysian foreign exchange market (MYR/USD) to analyse a dataset of every 15-minute currenc...

International Journal of Business and Management, 2011

Journal of Chinese Economic and Foreign Trade Studies, 2017

Purpose The purpose of this paper is to present the essential role that currency order flow plays... more Purpose The purpose of this paper is to present the essential role that currency order flow plays in the foreign exchange markets of emerging economies in the determination of their currencies in the short and the long-run against major currencies of the world, which cannot be over emphasized, most especially against the US dollar. Insomuch that, if some of these emerging economies can be successfully transmitted into full development, it would be a good model for other emerging economies and the world at large. Design/methodology/approach A hybrid model (portfolio shift model) proposed by Evans and Lyons (2002a, 2002b) is extended to analyze a data set of every quarter of an hour currency order flow and currency exchange rate fluctuations of Thai Baht (THB) against the US$ for the period of six years (January 2010 to December 2015). To reflect the pressure of currency excess demand, the authors construct a measure of currency order flow in the Thailand currency exchange market. Vector autoregression model is applied to estimate the effectual role of currency order flow in the determination of exchange rate for the THB against the US$. Findings Currency order flow indeed accounted for a sizeable and significant portion of the fluctuations in the THB and the US$ exchange rate. Originality/value Insomuch that, the results show that currency order flow has significant explanatory power in the emerging markets economy to capture the THB exchange rate variability, and it then brings to the attention of the Thailand Monetary Authority the importance that should be attached to the market microstructure.

Imo State University /Business & Finance Journal, 2021

This paper presents empirical test results on the effect of exchange rate on economic growth in N... more This paper presents empirical test results on the effect of exchange rate on economic growth in Nigeria with emphasis on asymmetric relationship among the variables (Gross Domestic Product, Exchange Rate and Inflation Rate) using data from 1981 to 2020. Applying the Non Linear Autoregressive Distributed Lag Model (NARDL) approach to examine asymmetric relationships among variables. The study found that, in the long-run, economic growth is positively affected by positive shocks to exchange rate. Meanwhile, both negative and positive shock to inflation rate was found to have adverse non-contemporaneous effect on growth in the long-run. Since both positive and negative changes affect economic growth adversely, it is recommended that the Nigeria Inflation component is reviewed to identify the key drivers and the policy to optimize the relationship between economic growth and inflation rate. In addition, fiscal, monetary and general trade policies must align with the exchange rate policies for desired output growth. Therefore, the monetary authority should implement policies that will boost Nigeria production base to maximize the benefits from foreign exchange inflows.

UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT, 2021

The study examines the impact of currency fluctuations on export revenue of some selected African... more The study examines the impact of currency fluctuations on export revenue of some selected African countries (South Africa and Tunisia).The secondary data were sourced from World Bank Data Atlas for Export Revenue (ER), Inflation Rate (INFR), Exchange Rate (EXR) and money supply (MS) for the period, 1990 to 2019. Unit Root tests were conducted using Augmented Dickey Fuller (ADF).For the estimation of the variables, GMM is applied. The results show that, 56% of change in export revenue can be explained by exchange rate (EXR), money supply (MS) and inflation rate (INFR). The inflation rate (INFR) has positive but without statistical significant impact on export revenue of the selected countries. While, money supply (MS) and exchange rate (EXR) has strong, positive and statistical significant impact on export revenue of the selected African countries.

Imo State University/Business and Finance Journal, 2020

This paper empirically investigates The Effects of monetary policy shocks on foreign exchange rat... more This paper empirically investigates The Effects of monetary policy shocks on foreign exchange rates in Nigeria and South Africa using VAR procedures for the time series data which spanned the period 2005-2017. In order to achieve the objectives of the study, some selected components of monetary policy instruments and foreign exchange rates variables for Nigeria and South Africa were utilized. The results from the VAR method revealed that monetary policy shocks impacted on the variability for both countries' domestic exchange rates against the foreign currencies, nevertheless, these movements are inconsistent with theory. The empirical results further indicated that, especially for Nigeria, exchange rates movements are at variance with the expected outcome. Therefore, domestic currency depreciation is more likely to be experienced rather than appreciation in an economy where monetary policy contraction is embraced.

LASU JOURNAL OF ACCOUNTING AND FINANCE, 2019

This paper investigates foreign exchange market intervention in an emerging market through the be... more This paper investigates foreign exchange market intervention in an emerging market through the behavior of currency order flow, with evidence from ASEAN-5 foreign exchange markets. The study constructs a measure of currency order flow in the ASEAN-5 foreign exchange markets context to reflect the pressure of currency excess demand for the period, 2010 to 2015. It also adopts some market intervention success criteria and OLS approach to explore market intervention and the extent to which this policy tool is effective. The findings show that market intervention is effective in influencing both the exchange rate and currency order flow, as the presence of monetary authorities affect the correlation between exchange rate and currency order flow. More so, the monetary authorities mostly intervene to smooth the foreign exchange market, which is more of “leaning against the wind” but unable to reverse the trend. It shows that, the exchange rates of ASEAN-5 countries are sensitive to central bank intervention. However, the study suggests that the central bank intervention will only become effective if the country has a sound monetary policy and fiscal policy respectively.

International Journal of Academic Accounting, Finance and Management Research, 2020

This paper empirically examine the effect of financial leverage on firms' performance, a study of... more This paper empirically examine the effect of financial leverage on firms' performance, a study of listed Pharmaceutical firms' in Nigeria. Using annual panel data for a period of 16 years, ranges from 2003 to 2018 with the application of econometric techniques. The empirical results show that Debt Equity Ratio (DER) have positive relationship, while Debt Ratio (DR) and Interest Coverage Ratio (ICR) has negative relation with Return on Assets (ROA) and Return on Equity (ROE). This evidence that financial leverage has significant effects on profitability and efficiency of firms' performance, especially quoted Pharmaceutical Companies in Nigeria.

IMO STATE UNIVERSITY BUSINESS AND FINANCE JOURNAL, 2019

This paper presents empirical test results of Malaysian and Thailand foreign exchange market micr... more This paper presents empirical test results of Malaysian and Thailand foreign exchange market microstructure assessment of exchange rate dynamics and market intervention. The study investigates whether currency order flow captures the movement of exchange rate of MYR and THB against US dollar, and how the long-term and short-term components impact the relative estimation of MYR and THB in the international markets. The study construct a measure of currency order flow in the Malaysian and Thailand foreign exchange markets to reflect the pressure of currency excess demand. VAR model is applied to estimate the important role of currency order flow in the determination of the currency exchange rate for the Malaysian ringgit (MYR) and Thailand Bath (THB) against the US dollar (USD). A hybrid model of order flow and exchange rate dynamics proposed by Evans and Lyons (2002a) and extended by Zhang et al (2013) is applied to the countries' foreign exchange market (MYR/USD and THB/USD) to analyze a dataset of every fifteen-minute currency order flow and exchange rate movements from January 2010 to December 2015. Also, the effectiveness of foreign exchange market intervention by the duo central banks (Bank Negara, Malaysia and Central Bank of Thailand) is tested through the behavior of currency order flow. The findings reveal that currency order flow explains an important portion of the movement in the MYR-USD and THB-USD exchange rate. And that, the exchange rates of these countries are sensitive to foreign exchange market intervention.

LASU JOURNAL OF BUSINESS REVIEW, 2018

Journal of Business Strategies, 2018

This paper investigates the dynamics of Exchange Rate and Stock Price Index in Nigeria and South ... more This paper investigates the dynamics of Exchange Rate
and Stock Price Index in Nigeria and South Africa. To
conduct this study, daily exchange rates of US dollar
(USD), Euro (EUR), Japanese Yen (JPY), and Great
British Pound Sterling (GBP) against the Nigerian
Naira and South African Rand, and daily values of
Nigerian Stock Exchange-All Share Index (NSE-ASI)
and Johannesburg Stock Exchange-All Share Index
(JSE-ASI) were considered for the period of January
2010 to September 2017. Johansen co-integration tests
and Granger causality tests were employed to analyze
the correlation between the two financial variables. The
findings show no evidence of a co-integrating
relationship between domestic stock prices and
exchange rates for all the four currencies. Thus, test for a short-run in-sample causal relationship between
domestic stock prices and exchange rates was
conducted. The empirical results indicate that no
causality exists between domestic stock prices and
exchange rates of US dollar and Japanese Yen against
Naira; while causality ensues from domestic stock prices
to exchange rate of Euro and British Pound Sterling
against Naira. Furthermore, unidirectional causality
exists between domestic stock prices and exchange rates
for Japanese Yen and British Pound Sterling against
Rand; yet, there is an evidence of bidirectional causality
between domestic stock prices and exchange rates for
US dollar and Euro against Rand. This suggests that the
diffusion progression between stock market and foreign exchange market is depicted by the “Stock” oriented channel in Nigeria, while in South Africa, “Flow and Stock” oriented channels subsisted.

YOBE JOURNAL OF ECONOMICS, 2018

This paper presents the important role currency order flow plays in the foreign exchange markets ... more This paper presents the important role currency order flow plays in the foreign exchange markets of an economy that have undergone rapid financial market liberalization and mainly practiced managed-floating exchange rate regime. We focused on two main objectives. First, the role of currency order flow in determining exchange rate movements and second, the short-run and long-run interaction between micro-macroeconomic variables and exchange rate. A portfolio shift model is applied to analyze a dataset of every fifteen-minute currency order flow and exchange rate movements of Singapore dollar (SGD) against the US dollar (USD) over a 6-year period (2010-2015). VAR model, VECM and FEVD are used to determine the interaction between micro-macroeconomic variables and exchange rates. The findings show that exchange rates at short horizons are driven by currency order flow. Likewise, currency order flow appears to be the only influential determinant of exchange rate of SGD against the USD. This paper therefore, sheds more light to Monetary Authority of Singapore, market dealers and market players on the importance of market microstructure in the foreign exchange markets.