No abstract

This study looked into pension assets investments and its impact in the Nigerian economy. The investments includes quarterly reports of corporate debt securities, government bond securities, mutual funds’ investments, money market instruments, private equity funds and real estate securities from 2004 – 2020, and was sourced from the statistics database of the National Pension Commission, the Central Bank of Nigeria and the World data bank. The statistical measures used to analyze the data are the descriptive test, Unit root test, Co-integration test, Vector error correction, Causality and Impulse response function. The outcome of the analysis show that the variables were stationary after first differences were taken; and were also co-integrated at 2 lags indicating that both short and long run equilibrium relationship exist among the variables. From the vector error correction model, previous years’ deviations from long run equilibrium had a 0.09% speed of adjustment; leading to a short run equilibrium. The Causality test reveal that changes in government bond securities lead to changes in real estate securities and changes in money market investments leads to changes in government bond securities. In addition, the impulse response demonstrates that a shock to the system produces more negative responses than positive ones. The study thus recommends that the pension industry should vigorously create more awareness on the importance of employee pension plan; develop more e-channels to help rake in investible funds as well as develop more innovative products to support diversification of pension fund in different assets classes among others.

This study explored the Fisher separation theorem and capital budgeting decisions of quoted firms on the Nigerian stock exchange. A sample of 60 questionnaires were filled and returned by staffs from particular sectors like manufacturing, health and agriculture.  Descriptive statistics was employed to illustrate the data while the Spearman rank order correlation test was used to determine if a significant relationship exist among the variables. From the estimates, the Net Present Value and Modified Internal Rate of Return are regularly employed by firms in making capital budgeting decisions. Also, when firms employ capital budgeting tools, it creates wealth for both managers and shareholders, providing support for the Fisher’s separation theorem. Finally, a correlation coefficient of 0.827 reflect a positive and linear relationship between capital budgeting decision and Shareholders’ value creation. Thus, an increase in capital budgeting decisions result to an increase in value creation. This outcome is consistent with findings from other economies and previous studies. It thus recommends that firms in the Nigerian environment should ensure they play down on shareholders’ desire for dividends and instead redirect their funds to more investments by employing suitable capital budgeting decisions.

Monthly All Share Index data from 1985M01-2021M12 was sourced from the Central Bank of Nigeria and the Central Securities Clearing System of the Nigerian Stock Exchange; to analyze multiple bubble periods. The supremum Augmented Dickey Fuller (SADF) and Generalized supremum Augmented Dickey Fuller (GSADF) quantitative model with 1000 repetitions along with a window size of 42 was selected to carry out the Monte Carlo simulation at the 95% confidence level. From the Backward SADF estimation, three periods of explosive pricing and collapses were detected. The study therefore recommends that market regulators should promote market information and support regular training of market participants to stem speculations and reduce arbitrage. Overall, well-informed risk management practices should be established to guard against market losses.