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Impact Of Global Financial Crisis On Crude Oil Prices, Stock Prices And Inflation Rates In Nigeria
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HEALTH SECTOR
Glaxosmith was selected for study under this sector
This company was recording a monthly share price increase of N0.929 but the crisis made it to have a monthly decrease of N1.052 which generally put the company at a monthly decrease of N0.255 per share.
PETROLEUM (MARKETING) SECTOR
This sector is also very sensitive to the crisis. Four companies were chosen from this sector. They are Chevron, Mobil, Oando and Total Oil. The various models fitted are stated below.
The petroleum sector was the booming sector in the stock market as shown on page 4.12 which can be seen from their models (before crisis). They were all enjoying price increases monthly with Total oil N8.929, Oando N17.848, Chevron N21.677 and Mobil N8.526. During the crisis, they all started recording decreases with Total oil N-10.302, Oando N-16.132, Chevron N-24.454 while Mobil had N-2.139 decrease their share prices. (See Table 4:12).
t-TEST FOR COMPARING BEFORE CRISIS AND DURING CRISIS We conducted a t-test to find out if there exists any significant difference between the stock prices of the selected companies before the crisis and during the crisis, the results are presented where sector by-sector in table 4:13 to table 4:16.
OTHER SECTORS
The stock prices of other sectors were also compared using t-test and the results are shown below in table 4:13.
The companies that recorded significant differences in their stock prices are RTBriscoe and Cadbury Plc. The other companies did not record any significant difference in stock prices, before the crisis and during the crisis.
INFLATION RATE
Time series regression was done for the inflation data collected during the studied period. The general model for inflation is Y = 3.332 + 0.597t with a P-value of 0.000 which shows that the model is significant. The above slope suggest that the inflation rate in Nigeria is
on the general increase of N 0.597 per month. When the data was splited into two to “Before crisis†and “during the crisis†the following models were obtained.
y = 3.253 + 0.538t - Before Crisis
y = 8.733 + 0.284 - During CrisisBANKING SECTOR
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis study explains the effects of financial crisis on crude oil prices, stock prices and inflation rates in Nigeria and the global markets. Data were obtained from major players in the financial and oil sectors of the economy. They were analyzed using statistical packages. The results showed that crude oil and stock prices were both increasing before the crisis and decreased during and after the crisis. It was also observed that the inflation rate was increasing. ... Continue reading---
TABLE OF CONTENTS - [ Total Page(s): 1 ]TABLE OF CONTENTS Front Matter Author’s DeclarationAbstractTable of ContentsCHAPTER ONE: INTRODUCTION Summary of Chapter One – Introduction Objectives of the studySignificance of the study.CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction Stock Market in Nigeria/Financial CrisisInflation/Crude Oil Prices CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY IntroductionResearch DesignSources of DataData PresentationData Analysis TechniqueModel Specification Chapter Four: DATA ANALYSIS Intro ... Continue reading---
CHAPTER ONE - [ Total Page(s): 2 ]OBJECTIVES OF THE STUDYTo determine the trend in stock prices movement before and during the financial crisis.To determine the trend of inflation rate movement before and during the financial crisis.To determine the trend of crude oil prices before and during the financial crisis.To compare the stock prices before the crisis and during the financial crisis.To compare the inflation rates before the financial crisis and during the financial crisisTo compare crude oil prices before and during the f ... Continue reading---
CHAPTER TWO - [ Total Page(s): 4 ]CHAPTER TWOLITERATURE REVIEWINTRODUCTIONThis chapter is a review of the literature encountered during the course of this study. It aims to set out the foundation upon which the author builds and addresses the lack of specific literature on financial crisis by building bridges between the literature that is available in the field of inflation, stock market and the literature concerning crude oil prices.The chapter also evaluates the current information on the state of the global financial crisis. ... Continue reading---
CHAPTER THREE - [ Total Page(s): 3 ]Every sample has some variation in it (unless all the values are identical, and that's unlikely to happen). The total variation is made up of two parts, the part that can be explained by the regression equation and the part that can't be explained by the regression equationWell, the ratio of the explained variation to the total variation is a measure of how good the regression line is. If the regression line passed through every point on the scatte ... Continue reading---
CHAPTER FIVE - [ Total Page(s): 2 ]CHAPTER FIVESUMMARY, CONCLUSION AND RECOMMENDATIONSSUMMARYChapter one saw us introducing the concept of global financial crisis. Attempts are made to give a background of global financial crisis, viz a viz the Nigeria situation. Nigeria is a part and parcel of the committee of nations low vulnerable. It was observed that Nigeria economy to global financial crisis and what have been the effects of the inflation, the magnitude and trend on the various sectors.Also, the objectives for this research ... Continue reading---
REFRENCES - [ Total Page(s): 2 ]BIBLIOGRAPHY1. (2009b), “Initial Lessons of the Crisisâ€, February.2. Adelman, M. A. (1990), Mineral depletion, with special reference to Petroleum. The review of economic and statistics. 72(1) February pp.1-103. Adeyeye, E.A. and T.O. Fakiyesi. 1980. “Productivity Prices and Incomes Board and anti inflationary policy in Nigeriaâ€. In The Nigerian Economy under the Military, Proceedings of the 1980 Annual Conference of the Nig ... Continue reading---
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis study explains the effects of financial crisis on crude oil prices, stock prices and inflation rates in Nigeria and the global markets. Data were obtained from major players in the financial and oil sectors of the economy. They were analyzed using statistical packages. The results showed that crude oil and stock prices were both increasing before the crisis and decreased during and after the crisis. It was also observed that the inflation rate was increasing. ... Continue reading---