Effect of Capital Market Reforms on the Efficiency of Nigerian Stock Market
Abstract
Financial reforms are aimed at transforming the financial sector through various policy initiatives to improve the efficiency of the financial sector. The unwavering problems of the Nigerian financial sector have raised arguments about the way in which appropriate reforms could be enforced to stimulate the growth of the sector. This study therefore, examined the effect of capital market reforms on the efficiency of Nigerian stock market. Secondary data were used for this study. The relevant data were sourced from Securities and Exchange Commission Statistics and Central Bank of Nigeria between 1982 and 2021. The results of the DEA showed that of the period of forty (40) years examined, the Nigerian stock market was efficient for sixteen (16) years considering the capital market reforms in existence with efficiency scores varying between 0.969 and 1. It was recommended that the regulatory authorities of the capital market should continue to make concerted efforts towards cushioning the effects of the global financial meltdown on the Nigerian Exchange Group which has significantly affected its performance. This will help to restore investor’s confidence and revival in the market
